Amazon Sidewalk: What Investors, Device Owners Should Know

One of the largest companies in the world is launching a new service that will connect networks to different internet connections via their smart devices. The new technology has some positives mentioned by the company but also comes with red flags.

What Happened: Sidewalk, an internet sharing network from Amazon.com Inc (NASDAQ: AMZN), is an effort from the company to connect its devices and third parties.

Amazon’s internet sharing network will connect millions of Amazon Echo and Tile devices, according to Recode. The devices will “mesh” together using Bluetooth and radio frequencies.

Most Amazon Echo devices and Ring cameras began sharing internet capabilities and connected to the Amazon Sidewalk network as of June 8. Some newer tracking devices will be turned on beginning June 14.

The devices will connect to other Sidewalk-enabled devices within range, like other houses in your neighborhood. This practice will allow devices to stay connected to the internet even if out of range of a Wi-Fi network or the internet goes down.

Amazon is actively soliciting developers to add Sidewalk capabilities to other devices.

Related Link: EU Privacy Watchdog Initiates Probe Against Amazon

Amazon Sidewalk Positives, Negatives: Amazon mentions several benefits for its new Sidewalk network. Having the service can allow a Ring security camera to continue to send alerts if the internet goes down. Sidewalk could also help find a lost pet.

Careband, a wearable locator for people with dementia, is working to see if Amazon Sidewalk could help the company.

The biggest negatives are data and privacy. The Amazon Sidewalk network will see data passing through your neighbor’s devices and vice versa.

Owners of Amazon Sidewalk-connected devices will also share a small amount of internet bandwidth (500mb monthly max).

Another potential red flag is Amazon’s decision to automatically opt in users into the Sidewalk service rather than allowing users the ability to decide if they want to be a part of the free service.

“If this service is not providing you additional functionality you need, it certainly seems like this should be off,” Northeastern University associate professor David Choffnes told Recode.

Amazon told Recode that the decision to make the service opt out was done to make it easier for customers to take advantage of the benefits of Amazon Sidewalk.

“If you can’t provide a compelling reason for everybody to opt in, that’s a red flag,” Choffnes said.

Apple Inc (NASDAQ: AAPL) has a similar Find My Network option that uses all Apple devices that have the service enabled. The service will also help boost the profile for Apple AirTags.

Opting Out: Amazon product owners who want to opt out of the Amazon Sidewalk service have several options.

Amazon Echo device owners can open the Alexa app, go to settings, account setting, Amazon Sidewalk and choose disabled.

Ring owners can go to control center, Amazon Sidewalk, select disabled and confirm.

Photo courtesy of Amazon.