Amazon Prime members may soon be able to add another Amazon service to their list—wireless phone service.
Key Details
- Amazon is in discussion with carriers such as Verizon, T-Mobile, and Dish Network to offer low-cost or even free services, according to a Bloomberg report.
- Sources told Bloomberg that the service would be available to Prime members and would either be low-cost or free to participants.
- An Amazon spokesperson told Axios that the company is “always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time.”
Why it’s news
Adding wireless to Amazon’s existing offerings could extend the company’s already impressive reach into nearly every market share. The reported negotiations with Verizon, T-Mobile, and Dish would mean that customers could choose from a wide range of coverage options.
The reported ongoing negotiations suggest that Amazon would become a mobile virtual network operator. This would mean that the company could pay to use the mobile network’s infrastructure to launch its own mobile network offering.
If such a deal were to go through, it would be intriguing for a telecom to consider, as it would represent Amazon buying in bulk and providing the company with reliable revenue. However, it could also result in a surge of customers leaving for Amazon Prime instead of staying with their current provider, Axios reports.
On Friday, Verizon and T-Mobile’s shares fell 3.2% and 5.6%, respectively. Dish’s shares rose 16.2% as investors viewed the potential deal positively.
T-Mobile issued a statement saying, “We are not in discussions about inclusion of our wireless in Prime service, and Amazon has told us they have no plans to add wireless service.” Verizon and AT&T made similar statements.
