Amazon may give Prime customers a cheaper monthly cellular plan

Date:
Fri, 02 Jun 2023 21:31:27 +0000

Description:
Amazon may be negotiating with carriers to offer MVNO service to Amazon Prime members for a low monthly fee

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Amazon may eventually offer Amazon Prime customers cheap or even free
cellular service, according to a report from Bloomberg (via Yahoo). If true, the company would buy network capabilities from T-Mobile, Verizon, or even Dish Networks Boost Infinite network and act as its own mobile virtual
network operator, a so-called MVNO strategy. Amazon denies that this is happening.

Bloomberg says that Amazon could buy airtime and offer it for $10 per month
or less to Amazon Prime customers. The company might even offer cellular service to customers who dont subscribe to Prime. This pricing would significantly undercut even the most aggressive cellular plans in the US
right now. Amazon Prime currently costs $14.99 per month or $139 per year.

Unlimited prepaid plans on the major US cellular networks run around
$60/month for a single line of service, and restrictions often apply. Plans only get cheaper when you add more lines. Google Fi , an MVNO service run by Google, costs $50 per month for a single line, but can be reduced to $20 per month if you have four lines of service. It is unclear how Amazon would
handle families under a possible Amazon Prime MVNO. This is still a rumor
even if it makes a lot of sense

Because of the enormous sensitivity that must be involved, no party will fess up to the possible deal. Amazon denies any mobile offering, telling Bloomberg that it is exploring adding even more benefits for Prime members, but dont have plans to add wireless at this time. The mobile carriers that might sell airtime to Amazon also declined to comment.

That makes sense, because this deal would be very disruptive. Right now the
US mobile market lacks competition among the carriers. Ever since T-Mobile engulfed Sprint , weve had three carriers offering very similar plans at similar price points. You can get Disney from Verizon, but not Verizon from Disney (Image credit: Disney Plus)

There are occasionally unique deals on new phones. Carriers also make partnerships with streaming services and offer bundles, so you might get Disney or Apple TV or Paramount Plus with your mobile plan. Amazon Prime has even been offered as a bundle option on US carrier plans, including the now-defunct Sprint.

While numerous MVNO brands have come and gone over the years, none have offered serious competition to the larger nationwide networks that control
the cell towers. Some of the largest brands, like Boost Mobile and Metro,
have been swallowed up by nationwide networks and used as a prepaid brand.

Amazon would offer unique competition in many ways. It already has a built-in subscriber base paying for services. It already has a robust sales channel
for products like connected mobile devices. It manages returns, service, and warranty partnerships. These are usually major roadblocks to entry in the mobile network space, but Amazon has almost every base covered. One thing remains steadfast the carriers are in control

That said, Amazon doesnt own cellular towers. There have been talks of Amazon building out a constellation-type satellite network , which could theoretically drive a mobile network, but that hasnt happened yet. If Amazon, or any company, wants to become a mobile network operator, it needs to buy airtime from a major nationwide provider.

The carriers are not fans of giving up control, no matter how large the partner. When Verizon bundles Disney Plus with its monthly plan, you are
still buying your cellular plan from Verizon. We dont see Disney making the sale, offering you Verizon service if you subscribe to Disney Plus.

Even Apple hasnt tried to step a toe into the mobile network battle arena. If Amazon offers mobile service with Amazon Prime, the big shakeup would be wrestling control over US customers from the US carriers. The US carriers are incredibly powerful and dont give up without a fight. The iPhone 4 eventually came to Verizon and everywhere else (Image credit: Future)

Verizon refused to sell the iPhone for years because Apple wouldnt give Verizon control over the software. Until the iPhone 4 , every iPhone was an AT&T exclusive in the US because Apple wouldnt load Verizons VZ Navigator or even a basic MyVerizon account app. Apple wouldnt give Verizon any control,
so Verizon simply refused to sell the hottest smartphone the world had ever seen. For years. And years.

Eventually, Apple beat a US carrier at its own game, and it never happened again. Every other phone company, from Samsung to Google to Motorola, all
bend to the will of the US carriers. Every phone includes carrier software, and some are still locked down to a carrier network.

Amazon and the major networks will deny this is happening until the day it happens, but it makes a lot of sense, and though Im wary of Amazons power, Im also tired of the triopoly hold on US mobile networks. Three networks isnt enough.

There hasnt been enough competition on price or products. Amazon is already taking my money for Prime Video and free shipping. If it can offer a mobile plan for a bit more, the US carriers will need to fight very hard to win me back.



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Link to news story: https://www.techradar.com/news/amazon-may-give-prime-customers-a-cheaper-month ly-cellular-plan


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