Shares of Dish Network closed down about 11% on Wednesday, after prices were not seen since mid-2019, after the satellite TV company announced a partnership with Amazon Web Services to set up a 5G network in the cloud provider’s infrastructure.
Dish, in addition to distributing videos, is trying to become the fourth national wireless player, behind T-Mobile, Verizon and AT&T. The deal with Amazon is an essential part of Dish’s plan to develop a network from scratch that could deliver more reliable 5G speeds more efficiently than its legacy competition.
It is also important to start serving dishes in mid-2023. Dish risks losing its wireless spectrum licenses if it has not yet developed an operational wireless network.
Dish will begin work on the first standalone, cloud-based 5G open radio access network in the United States, starting in Las Vegas later this year, the agency said in a statement on Wednesday. To see how Amazon and Dish will work together, companies including Amazon and AWS will look at how they use 5G or build their own networks, the statement said. The terms of the contract were not disclosed.
Dave Brown, vice president of AWS ‘Core Elastic Compute Cloud Service, told CNBC’s TechCheck on Wednesday that the collaboration with Dish would serve as an “absolutely” case study that could show other telecom providers that Amazon could replace 5G networks with special-purpose data centers. Run.
This could help Amazon expand its own cloud business, a key source of revenue that grew by about 30% in 2020.
Meanwhile, Microsoft, the second largest cloud infrastructure provider behind Amazon, is keen to get a 5G network builder career in its cloud. AT&T used Microsoft’s Azure Cloud and acquired two companies last year targeting Microsoft’s career.