Amazon has tested its own wireless network,
The network would allow Amazon to give users access to Internet without relying on a traditional carrier like Verizon or AT&T. It was using wireless spectrum controlled by satellite company Globalstar Inc in its tests.
It’s unclear if Amazon is going to moved beyond the testing phase, says Bloomberg.
Globalstar wants to convert its satellite spectrum to terrestrial spectrum to provide “Wi-Fi-like services,” Bloomberg reports. It would then licence out some of that spectrum.
Amazon has reportedly been interested in doing its own smartphone. However, the smartphone market is very crowded, thus making it hard for Amazon to stand out from the crowd.
The way Amazon became a player in the tablet market was through low price. In smartphones, that won’t work. Not for the actual phone.
However, cell phone bills keep going up and up and up. If Amazon could figure out a way to sell a phone at a reasonable price and offer a low-cost data plan, then it might have something.
This experiment with Globalstar could be a step in that direction. Or, it could just be Amazon looking for a cheap way to provide wireless access to its tablets.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.