Amazon in talks to offer low-cost or free mobile service to Prime customers, report says
techcrunch.comAmazon is considering offering low-cost or possibly free nationwide mobile phone service to Prime subscribers in the United States, according to a new report from Bloomberg. The tech giant is reportedly in talks with Verizon, T-Mobile, Dish Network and AT&T.
People familiar with the matter told Bloomberg that Amazon is considering offering wireless plans for $10 a month or possibly for free, in a move to bolster loyalty among subscribers. Currently, some people may cancel their Prime subscription and then sign-up again when they want to. If Amazon were to bundle mobile service into Prime, it would likely lead to people sticking with their subscriptions long-term.
The report says the talks have been going on for around two months. Amazon may take several months to launch the service, or may scrap the plan altogether.
In a statement to TechCrunch, Amazon spokesperson Bradley Mattinger denied that Amazon is planning to add mobile service to Prime. “We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time,” Mattinger said.
Shares of Verizon, AT&T and T-Mobile fell following the publication of Bloomberg’s report in premarket trading on Friday. Verizon stock fell 5%, shares of AT&T fell 5.9% and shares of T-Mobile fell 6.8%.
Verizon and T-Mobile have both stated that they are not in talks with Amazon regarding the reported plans. AT&T declined to comment on the matter.
“Verizon is not in negotiations with Amazon regarding the resale of the nation’s best and most reliable wireless network,” a spokesperson for Verizon told TechCrunch. “Our company is always open to new and potential opportunities, but we have nothing to report at this time.”
“Amazon is a great partner to
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