Google and Amazon may be looking to expand their services and increase customer engagement by moving into providing wireless connectivity. The tech giants already provide consumers with a range of services while they're on the go — allowing them to sh...
digital, trend, google, amazon, facebook, wireless, telecom
Google and Amazon may be looking to expand their services and increase customer engagement by moving into providing wireless connectivity.
The tech giants already provide consumers with a range of services while they're on the go — allowing them to shop, stream media, and more — and they're now exploring ways to profit from the delivery of those and other services.
Specifically, Google officials have spoken with Dish about potentially joining forces to launch a wireless carrier, and Amazon has filed for the FCC's permission to launch satellites as part of a space-based internet network.
These developments represent potential shakeups to the connectivity space but BI research team believes the threat to incumbent telecom leaders is still far off.
Here's what wireless networks from tech giants would mean for the market:
- Tech leaders represent a clear threat to wireless incumbents based on names, capital backing, and consumer recognition alone, but communications requires a commitment to infrastructure spending and technical expertise that makes the market resistant to disruption.
- Getting into the wireless market could be even more costly, given the tens of billions of investment that network operators in the spend to maintain, expand, and upgrade their current networks.
- Telecoms should carefully monitor efforts by giants of the tech world to move into wireless, but they shouldn't get too scared just yet — tech companies will face a major uphill climb in the wireless space, ultimately providing telecoms with ample opportunity to ward off the potential disruptors.
Other Emerging Issues
LTE is poised to predominate in connected cars by 2025
According to Gartner (2018) and Mckinsey (2019), LTE Connections will take over the connected car market by 2025.How will this affect Africa?
Amazon building up its logistics division
It's no secret that US-based e-commerce giant Amazon has been quickly building up its logistics division to not only deliver the goods on its marketplace, but to set itself up as a potential third-party logistics partner for other retailers
Netflix plans to generate $1.3 billion in revenue by 2021
Netflix could generate some $1.3 billion in revenue by 2021 if it introduced an ad-supported tier in the US, according to Nomura's Instinet analysts