Seeking Alpha

Bloomberg: Amazon testing mobile network for Kindle gear

  • Sources tell Bloomberg Amazon (AMZN) has tested a mobile data network for its hardware using spectrum from Globalstar (GSAT.OB). However, they caution it's not clear if the tests, conducted "in the vicinity" of Amazon's Lab126 R&D unit (responsible for the Kindle line), are still ongoing.
  • Amazon has partnered with carriers to provide subsidized mobile connectivity for Kindle devices. Last year, the company introduced a 4G-capable version of the 8.9" Kindle Fire HD that offered 250MB/month of data for just $50/year. But even a moderate data user (never mind a heavy Prime Instant Video user) will go through 250MB in a month quickly.
  • The cost of any large-scale mobile network, even one limited to major urban areas, would run into the billions. Amazon's up-front costs would be much lower if it decided to lease capacity from an existing carrier and become an MVNO.
  • Hard-luck Globalstar has been petitioning the FCC for the right to use 80% of its satellite spectrum for terrestrial 4G mobile and Wi-Fi services. A ruling could arrive in the coming months.
Comments (3)
  • Nitin B. Sharma
    , contributor
    Comments (181) | Send Message
     
    Jesus. I understand Bezos' ambitions and determination. But, AMZN cannot be good at everything. Once AMZN stumbles, and it will, God help it.
    22 Aug 2013, 11:27 PM Reply Like
  • Gary J
    , contributor
    Comments (5580) | Send Message
     
    You have to find out what sticks to the wall. You only need a few good stocks in a portfolio - like AMZN.
    23 Aug 2013, 07:46 AM Reply Like
  • bd4uandu
    , contributor
    Comments (1980) | Send Message
     
    I am thinking Globalstar is going to pop tomorrow.
    22 Aug 2013, 11:34 PM Reply Like
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