Amazon may enter the low cost telephony business – 02/06/2023 – Tech

Amazon.com is in talks with several telecom providers to offer low-cost or possibly free mobile service to Prime subscribers in the United States, Bloomberg News reported Friday, citing sources familiar with the matter.

The online retailer is involved with Verizon Communications, T-Mobile US and Dish Network, and is looking to offer plans for $10 a month or less for Prime members, according to the report. Amazon has also spoken with AT&T previously.

The conversations between Amazon and Dish were reported last week. The telecom companies mentioned above did not respond to Reuters requests for comment.

“We’re always exploring adding even more benefits for Prime members, but we have no plans to add mobile networks at this time,” an Amazon spokesperson said.

The reported deals come as Amazon faces a slowdown in new signups for its Prime service, its flagship loyalty program that offers subscribers free shipping and faster video streaming.

For telcos, a reseller partnership with Amazon could serve as a means to attract new users and increase revenue. Details of potential deals between Amazon and the telecom companies were not immediately known.