A rumored possible alliance between Amazon and DISH Network has existing wireless providers shaking in their boots. With DISH Network‘s launch of the most innovative 5G network the US has seen and Amazon’s deep pockets, existing providers have a lot to be afraid of right now.
It’s purely speculation now, but it’s widely known that Amazon has their interests in the wireless industry. Between their interests in obtaining Boost Mobile when it was for sale a couple years ago, their widely popular tablets and flopped smartphone; why wouldn’t Amazon hop back into the wireless game? They have the sort of big pockets of major cash needed to pull off what will be the fastest, most technologically advanced network on the market.
It’s no secret that DISH Network is becoming dangerously close to breaking their promises they made to the FCC a couple years ago. DISH is facing a use it or lose it scenario that’ll take some major cash to get the wireless network up and running in time to satisfy their promises. One theory is if If Amazon was to be a MVNO, otherwise known as a mobile virtual network operator, they wouldn’t have to own or maintain their network. Instead they would be reselling DISH Network’s network and therefore doing what they do best which is sell and be where the customers are.
Amazon’s Major Wireless Flop The Fire Phone
Does anyone really remember the Amazon Fire phone? Probably not, considering sales were practically nonexistent and Amazon literally could not give these phones away. Sales tanked fast post launch and within two months AT&T dropped the price for the Fire Phone down from $200 down to just $1 with a two year contract. At this time those who still wanted to try out the majorly flopping phone could get their hands on it for only $179 without a contract, a $471 dollar price drop from launch. Then only three months after launch Amazon took the hit to the tune of $170 million dollars charge to wipe out the lost value of their phones including the whopping $83 million left in inventory.
The AT&T exclusive burned many early adopters that truly believed that the Amazon Fire phone was going to be the next big hit. Only to quickly realize that their phones didn’t live up to their hype. Amazon Fire phones were on a modified android operating system without access to the Google Play store. Instead users were subjected to the Amazon Appstore which at the time lacked many popular apps that users expected would be there.
While this experience has been a negative one for Amazon, there’s been many lessons learned here. The company has proven that they have indeed taken all the feedback they received and applied it to their very popular budget friendly Amazon Fire tablet line.
5G Has Been A Major Disappointment So Far
The race to release 5G by the big three wireless providers has been extraordinarily over-hyped, over-marketed and dramatically overstated. It’s impossible to know who is winning this marketing race thank you to terribly designed 5G coverage maps. What we do know is that this overhyped disappointment is about to change with the launch of a fourth major player in the game. With DISH Wireless there won’t be a need to support legacy customers who are still on 2G, 3G, and 4G. Infrastructure needs will be less of a burden as well compared to the big three due to their digitalization of the network.