Dish Network is reportedly nearing a deal to sell mobile plans through Amazon, opening up new opportunities for its growing mobile business. As the US mobile operator engages in talks with the online retail giant, details of new plans sold on Amazon could be revealed as early as next month, the Wall Street Journal reported.
While there are factors that might delay or derail the launch, this partnership could be extremely beneficial for Dish, as it strives to establish itself as a credible fourth mobile network operator in the US. Currently, the company is significantly trailing behind the leading three operators.
Dish acquired a customer base when it purchased MVNO Boost Mobile following the T-Mobile US/Sprint merger three years ago. They have also been building out an open RAN 5G network, which officially launched a year ago. However, their efforts have not attracted many customers, and they still mostly rely on AT&T and T-Mobile’s infrastructure for mobile traffic.
One major obstacle for Dish has been a lack of devices compatible with its Band 70 spectrum, a key part of its 5G holding. Company executives have indicated that the availability of more phones, including the iPhone, will soon improve this issue.
A partnership with Amazon would certainly provide Dish with a significant boost in retail exposure, leveling the playing field with competitors like AT&T, Verizon, and T-Mobile. As of March, Dish had 7.91 million mobile customers, though that number has been in decline ever since they acquired Boost.
Dish’s primary focus is on the development of its 5G network and attracting higher ARPU postpaid customers. While it may not be expected to take on the major players in the short term, Dish needs to make strides into the profitable postpaid market, especially given its substantial investments in network deployment.
Facing its next FCC rollout deadline in June, Dish is required to reach 70% of the US population via its 600 MHz licenses. The company appears confident in achieving this goal, but the estimated $10 billion cost of its 5G rollout will take time to recoup. Amazon’s extensive reach could be just the boost Dish needs to make a significant impact in the postpaid market, paving the way for further growth and success.
