A wireless Network tested by Amazon
Amazon.com Inc. (AMZN) has tested a new wireless network that would allow customers to connect its devices to the Internet, according to people with knowledge of the matter.
The wireless network, which was tested in Cupertino, California, used spectrum controlled by satellite communications company Globalstar Inc. (GSAT), said the people who asked not to be identified because the test was private.
The trial underlines how Amazon is moving beyond being a Web destination and hardware maker and digging deeper into the underlying technology for how people connect to the Internet. That would let Amazon create a more comprehensive user experience, encompassing how consumers get online, what device they use to connect to the Web and what they do on the Internet.
Amazon isn’t the only one which has tested technology allowing it to be a Web gateway. Google Inc. has secured its own communications capabilities by bidding for wireless spectrum and building high-speed, fiber-based broadband networks
Amazon continually tries various technologies, and it’s unclear if the wireless network testing is still taking place, said the people.
Chetan Sharma (independent wireless analyst) said “Given that Amazon’s becoming a big player in video, they could look into investing into forms of connectivity”
Bloomberg reported that “Amazon has moved deeper into wireless services for several years, as it competes with tablet makers like apple and with Google, which runs a rival application store. Amazon’s Kindle tablets and e-book readers have built-in wireless connectivity, and the company sells apps for mobile devices. Amazon had also worked on its own smartphone”
Chief Executive Officer Jeff Bezos is aiming to make Amazon a one-stop shop for consumers online, a strategy that spurred a 27 percent increase in sales to $61.1 billion last year. It’s an approach investors have bought into, shown in Amazon’s stock price, which has more than doubled in the past three years. The company’s Kindle devices have always been able to connect to the Internet.