Amazon's next Prime perk: Free cell phone service?

[Shawn Knight]

In brief: Few companies have the power to disrupt an entire industry in one fell swoop. Amazon is one of the few and sources familiar with the company's plans claim the e-commerce giant is working towards that very goal.

Insiders told Bloomberg that Amazon is actively negotiating with major wireless carriers in the US including Verizon, Dish Network, and T-Mobile to lock in the lowest wholesale price on wireless service. Amazon has also reached out to AT&T over the past six to eight weeks, sources said.

Amazon aims to set up shop as a mobile virtual network operator (MVNO) and offer discounted or free phone service to Prime members. Plans could be sold to subscribers for as little as $10 per month, and Amazon might even offer its biggest spenders service for free.

It's a bit of a double-edged sword for carriers. They'd make money up front by inking a deal with Amazon but could see some of their customers jump ship once Amazon's service launches. It's unlikely that carriers could come close to matching Amazon's pricing, and they for sure aren't going to give away their service for free. They might still have an advantage when it comes to new phone promos... but maybe not?

Amazon spokesperson Maggie Sivon threw cold water on the rumor, telling Bloomberg that while they are always exploring ways to add even more benefits for Prime members, they don't have plans to add wireless service at this time. Carriers declined to comment or said they were not actively talking with Amazon.

A Prime membership sells for $139 a year (or $14.99 per month) and grants access to an ever increasing list of perks including free and fast shipping as well as access to Prime Video and Amazon Music. Some analysts believe Prime growth has stalled due to the most recent price hike and other factors including inflation. Bundling in a new perk like cheap or free wireless service could get the ball rolling in the right direction once again and would be far less risky than its Fire Phone gamble.

Image credit: Prime by Jens Mahnke, Tower by Umang Patel

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https://www.techspot.com/news/98950-amazon-next-prime-perk-free-cell-phone-service.html

 

[p51d007]

"free" yeah, but how many ads/commercials per call? <G>

 

[ScottSoapbox]

I like Amazon, but I’m hesitant to bundle too many services with any company.

Although I have been hating Verizon’s coverage / speed lately and am considering switching to T Mobile (I already hate AT&T from before Verizon)... so more competition is good.

 

[dirtyferret]

Cool, bring on the competition. At worst maybe it helps lower people's bills with their current providers.

 

[RudyBob]

Industry has done an excellent job of making people think they NEED something and at an outrageous price

 

[PEnnn]

I can see it already: Lower your mobile bill by $20-$30, but pay say $20+ more for your prime membership.

Yep, sounds like Amazon. Prime used to cost $60 annually. Now it's $15 per month!!

 

[someOtherGuy]

Although I have been hating Verizon’s coverage / speed lately and am considering switching to T Mobile (I already hate AT&T from before Verizon)... so more competition is good.

I'm in your AT&T hater boat but sadly they're the least bad in my area after the 3G sunset. Maybe you could get good coverage with T-Mobile where you live but I seriously doubt it (Verizon used to be THE carrier with the best coverage on the 3G-4G days and T-Mobile/Sprint the worst). Every other MVNO is just using one of those 3 networks, so your coverage and speed shouldn't change dramatically (although the pricing and perks should).

 

[DSirius]

"free" yeah, but how many ads/commercials per call? <G>

Would be really funny from Amazon that, in the middle of a conversation, both speakers to be interrupted, to listen some mandatory ads for 30-60 sec, and only after that, they could resume conversation.

 

[GeforcerFX]

The big 3 ensure the MVNO's that aren't "owned" by them can't compete with them for service features and service speed. They can come close but typically the speeds are a bit slower, you are capped on data at lower amounts on unlimited plans and your missing some features. There shaved down plans that typically help more basic phone users save a lot of money per month vs. the premium plans that the main networks do.