Dish Network (DISH) on Wednesday said Amazon Web Services will be the preferred cloud computing services provider for its 5G wireless network. Dish stock surged, though the announcement did not include a strategic investment by Amazon in Dish’s 5G network that investors had speculated might happen.
The satellite TV provider said it will connect all of its 5G network hardware and management software through AWS, part of Amazon.com (AMZN) and the biggest cloud computing services provider. Dish plans to launch 5G wireless services in its first market, Las Vegas, in the second half of 2021.
Some Dish stock analysts expect the company to initially focus on providing private 5G wireless services to companies. One of the new features of 5G networks is that bandwidth can be sliced up to provide private communications.
“The partnership will allow AWS developers to use a dedicated slice of the Dish 5G network for specific network demands, providing customers with the latency, bandwidth, reliability, etc. to serve their needs,” Raymond James analyst Ric Prentiss said in a note to clients. “We believe DISH will more heavily focus on enterprise vs. consumer retail wireless.”
Enterprise applications are expected to emerge in smart factories, autonomous vehicles, drones, remote health care services and other areas.
Dish Stock: No Word Of Amazon 5G Investment
Amazon stock gained 0.6% to near 3,354. Amazon stock trades below an entry point of 3,552.35. T-Mobile US (TMUS) and other U.S. wireless firms are forging ahead with 5G wireless networks. T-Mobile is one of many 5G stocks to watch.
Some Dish stock bulls have speculated that Amazon could be an anchor tenant for the 5G wireless network and lease capacity under a wholesale agreement. Amazon could use the 5G bandwidth for video streaming or cloud gaming, investors say.
Dish plans to build out a 5G wireless network similar to Japan-based Rakuten Mobile. Rakuten has constructed a 5G network that uses lower cost, open-standard radio equipment and flexible cloud computing technology.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.