According to the latest industry reports, Amazon is currently considering offering low cost mobile phone serviceand even gratuitousfor your Prime subscribers in the U.S. According to these reports, Amazon would be looking to partner with Verizon, T-Mobile, Dish Network or AT&T to bring its new market strategy to fruition. The company is reaching out to all possible carriers to access the lowest possible wholesale prices.
People familiar with the plans told Bloomberg that Amazon is considering offering mobile phone plans to a cost of 10 dollars a month. This could even be completely free in a move to bolster loyalty among Prime subscribers. Currently, some people can cancel their Prime subscription and then sEsports Extrasup again whenever they want. If Amazon included mobile service in Prime, it would probably do for people to keep their subscriptions long-term.
Amazon, for now, denies that it is looking to offer a mobile service
It was on the TechCrunch portal, where Amazon spokesman Bradley Mattinger, denied that Amazon is planning to add a mobile service to the Prime subscription.
“We are always exploring adding even more benefits for Prime members, but we have no plans to add wireless services at this time,” the company spokesperson said.
Following the statements, the shares of Verizon, AT&T and T-Mobile suffered the consequences. Verizon shares fell 5%, AT&T shares fell 5.9% and T-Mobile shares fell 6.8%.
Verizon and T-Mobile have stated that They are not in talks with Amazon about the reported plans. AT&T declined to comment on the matter.
“Verizon is not in negotiations with Amazon regarding the resale of the nation’s best and most reliable wireless network,” a Verizon spokesperson told TechCrunch. “Our company is always open to new and potential opportunities, but we have nothing to report at this time.”
After the price increase of its subscriptions, Prime must offer added value
Amazon Prime subscriptions have a lot of competition in the United States. Reportedly, analysts have said that Prime has stalled since Amazon will increase its annual cost from 119 to $139. It is there that it has a fierce competition with the giant Walmart and its membership Walmart+.
By $98 a year offers the same fast delivery benefits as Prime at a more aggressive price. This membership also includes a streaming video platform such as Paramount+. That is why it makes sense that this movement is, for now, solely focused on the US market, which is where the competition is suffering the most.
The report notes that while Amazon may be paying wireless carriers to use its networks, operators who accept the agreement have a lot to lose. If Amazon ends up offering a free or low-cost mobile service, would be competing with the operators that provide the service. However, Bloomberg points out that traders are not really in a position to say no, as have invested billions of dollars in 5G networks and they are looking for new outlets to generate some return on their massive investments.