Why Amazon Wants to Buy Boost Mobile

The reason Amazon wants to by Boost Mobile – based on a story which comes from Reuters, has to do with everything Amazon does.

Kindle became one of the first services and devices in the IoT space and immediately made use of cellular networks to deliver content to tablets.

Besides e-readers, Amazon relies on broadband for almost everything it does – from ordering online to taking advantage of Amazon Prime benefits such as movies, music and more.

IoT is one of the most exciting opportunities the world has ever seen in terms of the sheer volume of devices connected to networks. Billions upon billions and growing. Cars, smart speakers, buttons which order paper towels, sensors, drones, everything will be connected. Amazon is an integral part of so much of this progress – speakers, Dash buttons, Ring video doorbells, etc. Imagine if it had another, more reliable, always-on network it could rely on, in the form of a 6-year plus agreement to use the T-Mobile network in addition to additional spectrum.

Amazon has tablets and sells phones, albeit not it’s own anymore. It can tie in phones and tablets with service. It can add cellular service to Prime and charge $20+ more a year.

All the Internet giants are investing in directly or otherwise some sort of broadband play. Google has balloons, Facebook experimented with drones. Many of them own parts of underseas cables, Google tried to become a major player in residential fiber broadband, etc.

Connectivity is the oxygen which gives big tech companies life. If a competitor were to own the pipes and disintermediate them, it could spell the end. This is why Google built Chrome and purchased Android. To protect itself from Microsoft and Apple.

Boost Mobile takes everything Amazon does and makes it better.

We can think of no more logical acquirer.


 

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