Amazon is reportedly in talks to bundle cell phone services as a Prime benefit
Amazon is reportedly considering offering its customers mobile connectivity in addition to a US Prime subscription report Bloomberg. It is said to have entered into negotiations with existing US carriers, including Verizon, T-Mobile, Dish and occasionally AT&T, about using their networks to offer cellular connectivity, which would then be available for Prime- subscribers as part of their existing subscription or for a nominal fee of $10 per month.
In a statement, Amazon spokesperson Bradley Mattinger denied that the company is currently actively planning to add wireless connectivity to Prime. “We are always looking to add even more benefits to Prime members, but we have no plans to add wireless at this time,” said Mattinger. Bloomberg notes that plans could take months to kick in and may be scrapped altogether.
Amazon raised the price of Prime last year
The news about the talks comes as Prime subscriber growth is expected to slow after last year’s price hike, which saw the cost of an annual Prime subscription increase from $119 to $139. Amazon is also facing increased competition from these include Walmart Plus, a $98/year subscription service from the retailer that offers free grocery delivery on orders over $35. Walmart added a Paramount Plus subscription to its subscription service last year, which competes with Amazon’s own Prime Video streaming service.
While Amazon would pay wireless carriers to use their networks under the plans, Bloomberg notes that a partnership with the e-commerce giant could be a double-edged sword for them. If Amazon prices its wireless offerings as cheap as Bloomberg‘s report suggests so, it risks competing with carriers for their existing subscribers. Amazon has historically proven that it is willing to do so spending a lot of money for the sake of Prime subscriber growth.
Fellow tech giant Google already offers its own wireless network called Google Fi. Like Amazon’s rumored plans, Google Fi is what’s known as a mobile virtual network operator, or MVNO, and runs on T-Mobile’s national network, as well as a network of Wi-Fi hotspots.
