Amazon is reportedly exploring the idea of offering affordable or free mobile phone service to its Prime subscribers in the U.S. Talks are underway with Verizon, T-Mobile, Dish Network, and AT&T, as reported by Bloomberg, though T-Mobile and Amazon have denied the report. Amazon aims to provide wireless plans for $10 per month or less to its members, sources told Bloomberg. - The company could become a reseller or MVNO, allowing it to set its own pricing structure.
- Earlier reports suggested that Dish was considering offering wireless plans through Amazon.
- Following the news, AT&T, Verizon, and T-Mobile saw a 4% or greater decrease in morning trading, while Amazon's stock rose by around 2%.
- An Amazon spokesperson said the company is constantly exploring new benefits for Prime members but has no current plans for wireless services.
Amazon's possible entry into mobile phone services could boost loyalty among its Prime members as it faces increased competition from Walmart+. - Likewise, the move could address an apparent slowdown in Prime subscriptions. Consumer Intelligence Research Partners estimates that Prime had 168 million subscribers at the end of 2022, down from 170 million the year before, which is the first time ever that the service didn't see annual growth.
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