An Amazon/Dish Network Wireless Service? Who's Worried?

New niche mobile phone services might be seemingly harmless to big industry players, especially in light of the history of small to mid-size providers launched over the last few years.

But now add Amazon to the picture. That one name might change everything.

A Seeking Alpha report noted: “Amazon is likely to start a test outside the U.S. for a potential mobile wireless phone service and may eventually partner with Dish in the U.S., according to Boost Mobile America founder Peter Adderton.”

All this is connected to Dish Network, which last year bought Boost Mobile as a consequence of  the T-Mobile deal to buy Sprint.

For years Dish Network slowly moved into this space, amassing wireless spectrum. Now, due to Federal Communications Commission deadlines (mid-2023) it needs to move quicker.

For a while now analysts haven’t give Dish much of a chance in competing with well-established companies, especially in the highly desired, fast 5G space. Add this: Starting up a 5G service from scratch, Dish would need to spend anywhere from $10 bililon to a whopping $20 billion.

But partnering with cash-rich Amazon? That’s a different story.

But Here’s the major problem for U.S. carriers. What happens if Amazon decided to package a wireless service into its seemingly all-encompassing Prime membership (which already includes Prime Video, among other benefits)?

Peter Adderton, founder and former Boost Mobile chief executive officer, puts it plainly, in a recent report: “You will see massive destruction of wireless carrier revenue.” Well, now I’m sitting up and taking notice.

In a recent tweet Adderton added: “Imagine if Amazon offered the first 5GB free with every Amazon prime subscription. [It] could disrupt the market... [a] double threat to existing MNOs [mobile network operator] and hardware manufacturers.”

For Dish, which continues to see more troubles ahead when it comes to its legacy pay TV satellite service as well as some softening of its virtual pay TV service, Sling TV, all this would be a happy phone conversation to have with the ecommerce giant. Hello!

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