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Dish Stock Is Trading Higher As It Selects Cloud Provider AWS For 5G Network

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Dish Stock Is Trading Higher As It Selects Cloud Provider AWS For 5G Network
  • DISH Network Corp (NASDAQ: DISH) chose Amazon Web Services, Inc. (AWS) as its preferred cloud provider and will construct its 5G network on AWS under Amazon.Com Inc (NASDAQ: AMZN) deal.
  • Dish will launch its 5G network in Las Vegas in the third quarter, as per the Financial Times report.
  • The public cloud shift and the use of smaller suppliers, called ‘Open RAN’, were vital to regaining a footing in the global telecoms market following the regulatory crackdowns on Huawei Technologies’ equipment use in markets including the U.S. and U.K., Dish Chair Charlie Ergen said.
  • Dish utilized capacity on T-Mobile U.S. Inc’s (NASDAQ: TMUS) 4G services network. 
  • It has planned to incur $8 billion to $10 billion on its 5G network build-up. The company has also expended $25 billion on the spectrum.
  • Dish’s licenses mandated it to connect 20% of the U.S. population to the 5G network by June next year.
  • Amazon won the Dish deal by beating the likes of Microsoft Corp (NASDAQ: MSFT) and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Ergen said.
  • The telecom industry attracted large U.S. technology companies in the past two years following the shift in telecom functions to the cloud.
  • Amazon’s upcoming CEO Andy Jassy expected more telecom companies to follow Dish’s example over the coming years to focus their limited resources on network expansion and customer services instead of in-house data centers. The “expensive and slower” current network architecture drove the 5G shift added Jassy.
  • Amazon failed to enter the mobile handset market and is estimated to launch its wireless brand recently.
  • Amazon aimed to partner with the telecoms industry via AWS, as 5G and edge computing drove the need for processing power across the mobile network, according to Jassy.
  • Disruptive Analysis founder Dean Bubley expected the broader telecom sector shift to the public cloud to occur “in stages” as some parts of a network could not be “cloudified.”
  • Dish is betting on the AWS deal to compete with Verizon Communications Inc (NYSE: VZ), AT&T Inc (NYSE: T), and T-Mobile U.S. Inc.
  • Price action: DISH shares traded higher by 8.59% at $40.06 on the last check Wednesday.
 

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