It’s no secret Amazon has been searching for a fourth strategic pillar to join its Prime, Amazon Web Services (AWS), and Marketplace businesses. Amazon’s telecommunications ambitions may be just that.
Expanding its reach in telecom could enable the company to own not only the content and services it delivers, but also the delivery method itself. Bundling internet access with popular services — such as its Prime membership or its smart home products — could give it a competitive edge over today’s standalone broadband networks and create stickiness with existing customers. It could also attract new customers needing reliable internet access.
The move into telecommunications would also allow Amazon to collect more data from its customers, creating a flywheel effect with its advertising and retail businesses.
Using CB Insights data, we uncovered 5 of the most important strategic priorities in telecommunications highlighted by Amazon’s acquisitions, investments, and partnerships since Q1’21. We then categorized companies by their business relationships with Amazon across these priorities:
- Consumer connected products
- Enterprise connected products
- IoT components
- Satellite internet
- Cellular connectivity
