Amazon to Offer Free Mobile Service to US Prime Members: Bloomberg
The publication claims that Amazon is currently in negotiations with Verizon, T-Mobile US, and Dish Network to secure the best possible wholesale prices.
The e-commerce giant reportedly plans to offer wireless plans to Prime members for as low as $10 per month or even free, allowing it to enhance customer loyalty among its highest-spending clientele.
News of these talks has resulted in a surge of 8.4% in Dish shares during premarket trading on Friday. Conversely, Verizon, AT&T, and T-Mobile experienced declines of over 5%.
While the discussions have been ongoing for approximately six to eight weeks, AT&T has also been involved intermittently, according to sources familiar with the matter.
However, launching the plan may take several additional months and there is a possibility it could be abandoned, the sources added, who requested anonymity due to the private nature of the matter.
Amazon spokesperson Maggie Sivon responded to the reports by stating, “We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time.”
Analysts indicate that Prime membership growth has stagnated since Amazon raised its annual subscription price.
As of March, Consumer Intelligence Research Partners reported that there were 167 million Amazon shoppers with Prime memberships, unchanged from the previous year.
The company also faces competition from Walmart Inc., whose $98-a-year Walmart+ membership (US) provides similar perks to Prime, along with free grocery delivery for orders exceeding $35.
For the wireless industry, a potential deal with Amazon could generate increased wholesale revenue and attract more users to newly expanded 5G networks.
The company could offer wireless service to Prime members at an attractive price, leading customers to switch from their current providers.
It’s unclear if Amazon will ever offer free wireless service in Canada, but if it does, that would be truly amazing.