Amazon Stock Rose After Enabling Sidewalk Mesh Network for Iot Applications

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Amazon (NASDAQ:AMZN)

It’s unusual for a whole new network to become available for devices to connect. For instance, cellular and WiFi networks have operated for quite some time. Yet, it has been revealed that Amazon (NASDAQ:AMZN) has spent the past several years secretly developing a low-bandwidth wide-area network dubbed Sidewalk that currently covers 90% of the US population and is geared for the consumer- and business-focused IoT applications.

In reality, Sidewalk needs to be cutting edge. It wasn’t until 2021 that the network itself was released, and even then, only with a select few devices. New software and hardware solutions for developers have been released by businesses including Silicon Labs (SLAB), Nordic Semiconductor (OTCPK:NDCVF, OTCPK:NRSDY), and Texas Instruments (TXN), elevating the significance of this week’s news concerning Sidewalk’s increased service area.

Since the middle of 2019, Amazon has sold millions of Echo smart speakers and Ring security cameras, both of which are vital to the functioning of Sidewalk. To facilitate the establishment of what is formally known as an ad hoc mesh network, the business installed a chip from the semiconductor company Semtech utilizing a technology called LoRa (short for Long Range) inside Echos and Ring cameras. The sidewalk can also use Bluetooth Low Energy (LE) and an in-house FSK signaling mechanism similar to 900 MHz cordless phones from the 1990s.

Sidewalk uses the WiFi connections established by the Echo and Ring devices to accomplish its goals. It utilizes longer-range network technologies like LoRa to provide fundamental connectivity to other Sidewalk-enabled devices by tapping into a part of that connection. As no one entity is in charge of the whole system, it is called a decentralized or “ad hoc” mesh network. Another way that devices are linked is by direct contact between them. In practice, this means that even in areas where WiFi signals (and, in theory, even cellular connections) aren’t accessible, low-powered or low-cost devices may enjoy basic internet connectivity. Although the speeds of these connections are measured in the single- and double-digit kilobytes per second range, they are sufficient for certain uses despite being much slower than other available options.

One of the first examples of this is the use of location-based devices, such as Tiles, which emit a signal that can be picked up by other internet-connected devices even when the object they are attached to is outside of usual network coverage zones. You may recognize this as similar to Apple’s AirTags. By selling millions of internet-enabled iPhones, iPads, and other gadgets using the Bluetooth connections these devices also have, Apple created an ad hoc network. The company accomplished the same with its Echo devices and Ring security cameras.

While the technology has several very appealing features, it has yet to be without criticism for several reasons. Secondly, to make these connections possible, Sidewalk-enabled devices like Echos and Rings basically share up to 80kbps of a home’s internet bandwidth with neighboring devices in nearby houses or the area. Although you can modify the settings on your Amazon device to prevent it from revealing its connection over WiFi, most consumers either don’t know how to or don’t care to do so.

Obviously, only some people are enthusiastic about this plan. Of course, Amazon (and Apple) quickly pointed out that all data sent across this Sidewalk (or Find Me) connection are encrypted at all points. No existing device owner can see the data from a neighbor’s device or a passing car’s device that briefly passes over their network. There have been no recorded data breaches on these networks yet, but that might change due to the increased scrutiny the network is getting.

Notwithstanding these caveats, the idea is appealing since it provides a cellular-like network that low-cost, ultra-low-power devices may use for free. Knowing that the network effectively covers most of the United States makes this an attractive notion for manufacturers of IoT devices and software developers. Amazon also said it collaborates with several startups that provide Internet of Things products that function exceptionally well with the Sidewalk network. Netvox produces a multi-sensor gadget that can be monitored remotely over a network for things like water leaks, air conditioning systems, etc. OnAsset features a sensor that monitors perishable foods’ temperature and other packaged items. Primax has a Sidewalk-connected smart door lock that can alert users when the power (and WiFi) goes off at their house or business.

In addition to these partners, Amazon also introduced a suite of Amazon Web Services (AWS) tools and services tailored to make it simple for developers to build and launch Sidewalk-powered cloud apps. (And this is how Amazon expects to generate money off Sidewalk, at least in the short term.) For instance, the AWS IoT Core for Amazon Sidewalk makes it simple for developers to use AWS tools to build new services for Sidewalk devices. Amazon has also made available, via GitHub repositories, a Mobile SDK and other software tools and examples designed to facilitate the creation of mobile apps for iOS and Android that use Sidewalk connections.

The reality is that consumer IoT applications have consistently fallen short of the high hopes originally attached to them. The high financial and resource requirements of integrating wide-area networking into devices hampered the development of commercially viable goods and services. Although Sidewalk won’t be a panacea, it has the potential to significantly lessen the severity of many serious problems. Even yet, Sidewalk has room to grow and expand. For instance, there is currently no way to link a Matter-based home network with Sidewalk. A comparable set of IoT sensors might be valuable in both realms, so here’s hoping that further development is done in this area. Granted, Sidewalk is built more for out-of-house applications and Matter for more in-house and in-building.

The concept of a new network for the Internet of Things applications is appealing. Still, privacy considerations must be taken into account. Suppose resourceful programmers can find useful applications for the new tool. The potential for expanded networked access to devices and services is high in that case.

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