Amazon Inc. is reportedly negotiating with several wireless carriers in the US for “offering cheap or possibly free nationwide cell phone service” to his US First subscribersreports Bloomberg referring to people familiar with the situation.
According to the report, Amazon is reportedly in talks with Verizon Communications Inc., T-Mobile US Inc. and Dish Network Corp. to purchase their network capabilities for the proposed service.
Amazon may offer low-cost or free mobile services to Prime members
Amazon has been negotiate with the wireless carriers to get the lowest possible wholesale prices to offer Wireless plans for Prime members for $10 per month or possibly freeincluding a possible partnership with Dish Network.
Negotiations have been underway for six to eight weeks with US mobile carriers, including AT&T, though concrete decisions have yet to be made. The report adds that the e-commerce and streaming giant may scrap the idea if talks are unsuccessful.
“We are always exploring adding even more benefits for Prime members, but have no plans to add wireless at this time,” an Amazon spokesperson said in response to Bloomberg.
Verizon and T-Mobile both denied talks with Amazon about the new offering
“Verizon is not negotiating with Amazon to resell the country’s best and most reliable wireless network. Our company is always open to new and potential opportunities, but we have nothing to report at this time,” said a spokesperson Verizon said in a statement.
“Amazon is a great partner for T-Mobile in many areas, and we are always interested in working more closely with our neighbors across the city in new ways. However, we’re not in talks about including our wireless service in Prime service, and Amazon has told us they have no plans to add wireless service. T Mobile said in a statement.
AT&T is not in talks with Amazon to resell wireless services.
Amazon Prime subscriptions “stagnated” after the company increased the annual Prime subscription cost from $119 to $139reports Bloomberg citing analysts.
If Amazon does offer cheap or free wireless servicethe company would significantly undercut the prices of many national carriers in the US and compete with them for their current customers. This could also be possible boost their Prime membershipresulting in a decrease in the number of new subscribers.