What is Amazon Sidewalk and how does it work?

Amazon Sidewalk is a shared wireless network that uses Bluetooth Low Energy and 900 MHz radio frequencies to extend connectivity for IoT devices. It works by pooling a small portion of internet bandwidth from participating Amazon devices — such as Echo speakers and Ring cameras — to create a community mesh network. This allows devices like Tile trackers and smart lights to maintain connectivity even when out of direct WiFi range.

Why is the opt-in default a concern for Amazon Sidewalk?

Amazon automatically enrolled eligible device owners into Sidewalk without requiring explicit consent, which critics argue undermines user privacy and data control. Participants are effectively sharing a slice of their home internet connection with neighboring devices and strangers. Privacy advocates and industry watchers have called for clearer disclosure and an opt-in rather than opt-out model.

Can Amazon Sidewalk gain lasting traction in the IoT market?

Amazon Sidewalk enters a competitive IoT connectivity space already served by Zigbee, Z-Wave, Thread, and cellular LPWAN technologies. Its advantage lies in Amazon's massive installed base of Echo and Ring devices, which could quickly create broad network coverage. However, long-term success depends on developer adoption, consumer trust around privacy, and whether the low-bandwidth use cases it targets prove commercially compelling.

Can Amazon’s “Network of Networks” Find Permanent Footing in IoT?

Amazon is launching Sidewalk, a shared 'network of networks' that uses Bluetooth and sub-GHz radio frequencies to connect IoT devices like Ring cameras and Tile trackers into a low-bandwidth mesh network. The program automatically opts in compatible Amazon device owners, raising questions about privacy, consent, and the long-term viability of the platform in an already crowded IoT connectivity landscape.

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By Hilary Kennedy · July 13, 2021, 3:08 PM UTCAdam Dunkels VideoAmazonAmazon SidewalkBluetooth

Key takeaways

Amazon Sidewalk creates a shared, low-bandwidth network by pooling connectivity from compatible devices like Echo and Ring products.

Users are opted in by default, which has drawn criticism around privacy and consent from consumers and industry observers.

The initiative targets IoT use cases such as smart lighting, asset tracking, and security cameras, competing with existing protocols like Zigbee and Z-Wave.

“This is a bold move by Amazon to opt everyone in.”

Amazon is launching Sidewalk, a new Bluetooth and radio frequency-enabled “network of networks” that essentially pulls disparate WiFi signals from compatible devices into a low-bandwidth smart network for IoT devices like smart lights, Ring cameras, and Tile devices. Its vision, it says, is to enable an integrated network of smart devices for smart neighborhoods.

Joining MarketScale host Hilary Kennedy to discuss the new network and its implications is Adam Dunkels, Founder & CEO at Thingsquare, an IoT solutions company that helps businesses quickly deploy their internet of things to solve business problems. The two discussed the industry impact of Amazon’s network on competition and business models, how consumers can choose to opt-out and how to measure its longterm impact on evolving smart city network infrastructure.

The network is meant to create a more consistent smart device experience in residential areas, helping reach disparate devices like smart garage lights or give users more oversight over WiFi-enabled Tile devices or smart dog collars.

However, Amazon Sidewalk is an opt-out service, meaning Amazon device users are automatically placed on the Amazon Sidewalk network, and because of the nature of the service, users won’t know who is sharing their personal signal, nor when. Unless a user opts out, Amazon and Echo Devices will automatically connect with neighbors’ devices and their internet connection if they’re connected to the network. While data will be shared, the amount will be minuscule, according to Dunkels, but the question is whether a user wants to support Amazon in this.

“This is a bold move by Amazon to opt everyone in,” Dunkels said. “They could’ve faced a massive backlash for this, but it seems like they haven’t really done that so far.”

As a business model, Amazon is basically subsidizing the cost of this new service by tapping into individual’s personally paid-for internet service, leveraging their purchase of existing Amazon nodes instead of investing in new hardware or a more robust network infrastructure. Dunkels breaks down the viability of this business model. And while other companies are looking to do the same thing, the competition just doesn’t have the same network resources to leverage.

“Beyond 5G, the Verizon’s, the AT&Ts, there are a number of startups that are trying to do similar things,” Dunkels said. “They’re struggling with ‘how do you get the network bootstrapped.'”

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