Amazon in talks to offer mobile services to Prime members
Amazon is reportedly in discussions with several telecom providers, including Verizon Communications, T-Mobile US, and Dish Network, about offering low-cost or even free mobile phone service to US Prime subscribers, Bloomberg News reported on Friday. Sources familiar with the matter said that the e-commerce giant is looking to provide wireless plans for Prime members at $10 or lower per month. Amazon also held preliminary conversations with AT&T earlier. While Amazon’s shares went up 2%, Verizon, AT&T, and T-Mobile experienced a drop of about 4 to 7%, and Dish Network’s shares increased by 17%. However, none of the telecom companies mentioned responded to Reuters’ calls for comments.
“We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time,” said an Amazon spokesperson. These talks come at a time when Amazon is facing a slowdown in new sign-ups for their Prime service, which includes video streaming and faster shipping for subscribers. The telecom partnerships with Amazon could potentially attract new users for the telecom companies and subsequently boost revenue. The details of the deals between Amazon and the telecom firms are not immediately known.
FAQs:
What is Amazon Prime?
Amazon Prime is a loyalty program offered by Amazon which provides consumers with benefits such as free two-day shipping and access to the streaming of movies and TV shows.
What is the potential price for Amazon Prime subscribers for mobile phone plans with these telecom companies?
Amazon is reportedly looking to offer wireless plans for Prime members at $10 or less per month, but the details of the deals are not yet known.
Which telecom companies are in talks with Amazon about this potential service?
Verizon Communications, T-Mobile US, and Dish Network are reportedly in discussions with Amazon about the possibility of a resell partnership, although none of them has commented on this news. Amazon also held preliminary conversations with AT&T earlier.
Why is Amazon considering offering mobile phone services to Prime subscribers?
Amazon is reportedly facing a slowdown in new sign-ups for its Prime service. Adding mobile phone services to the mix could potentially attract more users to the loyalty program and subsequently boost revenue for both Amazon and the telecom companies involved.
Discussions Underway for Amazon to Provide Mobility Services to Prime Members.
Amazon is reportedly in discussions with several telecom providers about potentially offering low-cost or free mobile phone services to US Prime subscribers. The e-commerce giant is said to be engaged in conversations with Verizon Communications, T-Mobile US, and Dish Network, with the aim of providing wireless plans for $10 or less per month to its Prime members. AT&T was also previously approached by Amazon. According to sources cited by Bloomberg News, the potential partnerships have yet to be fully fleshed out. Neither Amazon nor any of the telecoms providers involved have commented publicly on the reports. Amazon’s attempt to enter the mobile phone market comes as the company struggles to attract new members to its loyalty program, Prime, which provides a range of exclusive benefits including faster shipping and video streaming. A resell partnership with Amazon could provide a fresh income source for the telecom providers and help to attract new users.