Amazon in Talks with Wireless Carriers to Offer Low-Cost Mobile Phone Service to Prime Members

Amazon, the world’s largest online retailer, is reportedly in talks with several wireless carriers to offer its Prime subscribers low-cost or even free nationwide mobile phone service.

The company is negotiating with Verizon Communications, T-Mobile US and Dish Network to secure wholesale prices, with the aim of offering Prime members wireless plans for as little as $10 a month or possibly even for free, a Friday (June 2) Bloomberg report noted.

In an emailed statement to PYMNTS that didn’t address the talks, an Amazon spokesperson said, “We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time.”

This move is aimed at strengthening loyalty among Amazon’s biggest spending customers, per the report. Prime members already enjoy various benefits, including free two-day shipping, access to streaming video and music, and discounts on select products. And by offering mobile phone service at a reduced or free rate, Amazon hopes to keep its customers even more engaged with the brand.

Amazon has a track record of disrupting traditional business models, and this could be no different. By offering low-cost or free mobile phone service to its most loyal customers, Amazon could shake up the wireless carrier market and force competitors to adjust their pricing strategies.

While there are still details to be worked out, including the nature of the service Prime members can expect and Amazon’s ability to negotiate favorable deals with wireless carriers, it could be a major win for Prime members and the company alike if the company can pull it off.

“This is a smart move by Amazon. It’s a way to differentiate themselves from other retailers and create more value for their Prime members. If they can offer low-cost or free mobile phone service, it could be a game-changer in the industry,” an industry expert was quoted as saying.

This report comes at a time when Amazon and its rival, Walmart, are jockeying for customers’ loyalty.

Both Amazon Prime and Walmart+ have added roughly 12 million subscribers year on year, with a total of 182 million individuals having Amazon Prime subscriptions and 59 million having Walmart+ subscriptions, according to PYMNTS data.

In a recent addition to the suite of benefits Walmart offers to its subscribers, the retailer announced in September 2022 that Walmart+ members can now save time with curbside returns and return pickups from home.