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Amazon to offer low-cost mobile services?

According to a report from Bloomberg News, Amazon.com Inc is currently in discussions with various telecom providers to potentially provide low-cost or even free mobile phone service to its U.S. Prime subscribers. People familiar with the matter have revealed that Amazon is engaged in talks with Verizon Communications, T-Mobile US Inc, and Dish Network Corp. Amazon low-cost mobile services

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The company aims to offer wireless plans priced at $10 per month or less exclusively to Prime members. Previous discussions were also held between Amazon and AT&T Inc.

Following this news, shares of Verizon, AT&T, and T-Mobile experienced a decline of approximately 4 to 7 percent, while Amazon’s shares increased by 2 percent. Dish Network, on the other hand, observed a significant surge of 17 percent. The discussions between Amazon and Dish were reported in the previous week. Despite requests for comments from Reuters, the mentioned telecom companies have not responded.

In response to a query from Reuters, an Amazon spokesperson stated, “We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time.”

These reported discussions come at a time when Amazon is facing a slowdown in new sign-ups for its Prime service, which serves as a crucial loyalty program offering faster shipping and video streaming to its subscribers.

For telecom companies, forming a resell partnership with Amazon could be an opportunity to attract new users and enhance their revenue streams. The specific details regarding the potential agreements between Amazon and the telecom firms are currently undisclosed.

Several companies offer low-cost mobile services in the US. Some prominent examples include:

  1. Metro by T-Mobile: Metro by T-Mobile is a prepaid wireless service provider that offers affordable plans with unlimited data, talk, and text. They leverage T-Mobile’s network infrastructure to provide reliable coverage at a lower cost.
  2. Cricket Wireless: Cricket Wireless is a prepaid carrier that offers affordable plans with unlimited talk, text, and data. They operate on AT&T’s network, providing coverage across the country.
  3. Boost Mobile: Boost Mobile is a prepaid wireless service provider that offers low-cost plans with unlimited data, talk, and text. They utilize the network infrastructure of major carriers to provide nationwide coverage.

 

 

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