Amazon is in talks with AT&T, T-Mobile, Verizon, and Dish to cut wholesale prices, Bloomberg reported, citing unnamed sources, if a deal is made with Prime. Members may be offered a low-cost mobile plan of $10 per month.
Amazon will become a reseller called an MVNO (mobile virtual network operator) and will be able to set its own prices. Negotiations have been going on for nearly two months and could continue several more times, he said. Shares of Verizon, T-Mobile and AT&T fell 5% to 7% before trading hours on Tuesday following the news. Meanwhile, Dish, which has a much smaller market capitalization than the other three, is up 9%.
Amazon said it was “always looking into” additional benefits for Prime members, but said it had no plans to add cellular service at this time. Forbes has reached out to four telecom giants for comment.
Verizon, T-Mobile and AT&T, known as the “Big 3” of US cell phone carriers, offer unlimited plans for between $60 and $65 per month.Federal Communications CommissionAccording to the (FCC), the mobile industry is heavily concentrated in a few companies, which could lead to price fixing. When T-Mobile completed its Sprint acquisition in 2020, the industry threatened to shrink even further, but the FCC decided to keep the competition fair.dishapproved the acquisition on the condition that it would enter the industry.
Dish has overtaken Sprint to become the country’s fourth-largest mobile carrier, with nearly 8 million users as of early 2023, and is also working on building its own 5G network. The company now operates several major MVNOs, including Boost Mobile, formerly owned by Sprint, and offers plans starting at $25 per month.
2023-06-02 23:16:32
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