Amazon in talks to offer free mobile services to Prime members: Report
AT&T, Verizon, T-Mobile shares dropped following report on Amazon mulling cell services
Cathie Wood makes a prediction about Amazons future workforce
Ark Invests Cathie Wood predicts Amazon will have more robot employees than humans by 2030.
Amazon is mulling the possibility of offering free or low-cost mobile services to Prime members, according to a new report.
The Amazon shop logo is seen in this photo illustration on May 31, 2023, in Warsaw, Poland. (Photo by Jaap Arriens/NurPhoto via Getty Images / Getty Images)
Citing people familiar, Bloomberg News reported the online retail behemoth has been in talks for several weeks with Verizon, T-Mobile, Dish Network and AT&T to negotiate a deal using an existing network to provide the service as part of Prime subscriptions.
AMAZON SELLERS AVERAGED OVER $230K IN SALES IN 2022
Shares of Verizon, T-Mobile and AT&T all fell in midday trading, while Dish – which Bloomberg reported "has the most to gain from a deal with Amazon" – saw a 20% boost.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VZ | VERIZON COMMUNICATIONS INC. | 43.85 | -0.52 | -1.17% |
| TMUS | T-MOBILE US INC. | 244.82 | -2.12 | -0.86% |
| T | AT&T INC. | 22.69 | -0.47 | -2.01% |
| DISH | NO DATA AVAILABLE | - | - | - |
A source told the outlet a potential deal would still take several months to get off the ground and could be scrapped entirely.
AMAZON IS AN ‘UNDERAPPRECIATED' AI PLAY FOR INVESTORS: MARK MAHANEY
An Amazon spokesperson told FOX Business in a statement, "We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time."
Buzz is growing that Amazon is negotiating with telecom companies to begin providing low-cost or free mobile services to Prime members. ((Photo by ANGELA WEISS/AFP via Getty Images) / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 207.89 | +2.15 | +1.05% |
In statements to FOX Business, two cell service providers also denied engaging in any talks with Amazon about providing cell services.
"Amazon is a great partner to T-Mobile in many areas, and we are always interested in working more closely with our cross-town neighbors in new ways," T-Mobile said in a statement. "However, we are not in discussions about inclusion of our wireless in Prime service, and Amazon has told us they have no plans to add wireless service."
AT&T said in a statement, "AT&T is not in discussions with Amazon to resell wireless services."
The buzz over the possibility of Amazon offering cell services is not new.
Last month, The Wall Street Journal reported the online retailer was working on a deal with Dish to sell phone plans through Amazon, which the outlet said "could give the telecom company's 5G rollout a lifeline."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
In 2014, Amazon rolled out its own smartphone known as the Fire Phone, which operated on AT&T's network, but later abandoned it when sales failed to take off.
This story has been updated to include comment from T-Mobile and AT&T.
