Telecom shares fluctuated due to a Bloomberg report suggesting Amazon might enter the mobile market as a reseller.
According to the report, Amazon is in discussions with major telecom carriers such as Verizon, T-Mobile, and Dish about potentially reselling their mobile services to Prime members. Amazon may provide discounted or even free programs to Prime members alone. Amazon is also considering becoming a mobile virtual network operator (MVNO), employing telecom carriers’ existing network equipment to establish its own mobile plans. This collaboration may help telecom operators by delivering a consistent income stream at wholesale rates.
Amazon is also thinking about delivering free or cheap mobile services to Prime members, which could have a big impact on customers and wireless service providers’ stockholders. Amazon intends to use MVNO model to do this, utilizing the infrastructure of an existing wireless operator. Amazon hopes to improve its present array of entertainment and retail services, such as Amazon Prime Video, Audible, and Music, by doing so, so building a holistic service ecosystem for its users.
Meanwhile, Amazon spokesperson Bradley Mattinger clarified that they are not currently planning to add wireless services for Prime members.
The sources for this piece include an article in Axios.