The service would be offered to Prime members.

Deborah Yao, Editor

June 2, 2023

2 Min Read
Amazon headquarters in Seattle, Washington
Amazon headquarters in Seattle, WashingtonDavid Ryder/Getty Images

At a Glance

  • Amazon reportedly is talking with Verizon, T-Mobile and Dish to offer a mobile phone service that uses their networks.
  • The service could cost $10 a month or even free, to get Prime members to stay with Amazon or attract new subscribers.

Amazon reportedly is in talks with several U.S. wireless carriers to offer a $10 a month or even free mobile phone service to Prime members.

According to Bloomberg, Amazon is negotiating with Verizon, T-Mobile and Dish Network – a satellite TV operator that owns the Boost Infinite wireless service – to use their networks for its phone plan.

If talks bear fruit, the service will be offered to U.S. members of its Prime subscription service. For $139 a year, Prime members get fast and free delivery, Prime Video, discounts at its Whole Foods Market chain and other perks. Amazon had 167 million Prime members as of March.

The e-commerce and cloud giant is known for its willingness to absorb years of losses to gain a foothold in a new market, such as for video streaming.

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A deeply discounted Amazon mobile wireless plan would take customers away from big carriers. Current unlimited plans offered by incumbents start at $60 to $65 a month.

Shares of T-Mobile fell 7.5% intraday, Verizon was down 4.1% and AT&T dropped 4%. Dish was up 20.8% as the deal would help the struggling company transition to a national wireless carrier.

Wall Street believes the news even as Amazon denied that it had any plans to offer wireless service. Verizon and Dish declined to comment to Bloomberg.

Amazon would be entering the telecom market as a mobile virtual network operator, or MVNO. It means Amazon would be using the wireless network of a major carrier, like Verizon, but putting its own brand on the service.

Incumbent carriers are required by law to give competitors access to their networks as a way to keep the market competitive. Other MVNOs include Mint Mobile, Google Fi, Boost Mobile, Comcast’s Xfinity Mobile and TracFone.

Amazon previously developed its own smartphone called Fire Phone, but it did not gain traction and was discontinued.

About the Author(s)

Deborah Yao


Deborah Yao runs the day-to-day operations of AI Business. She is a Stanford grad who has worked at Amazon, Wharton School and Associated Press.

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