Maybe one day Amazon Prime will include your rent and health insurance, too.
Well, probably not, but a recent report indicates that Amazon wants Prime to interfere with another part of your life. According to Bloomberg(opens in a new tab), the $140-a-year subscription (including free shipping, discounts and Prime Video, among other things) could include cheap or free cell phone service. The Bloomberg report said that Amazon is currently in talks with providers such as T-Mobile and AT&T, although those same providers denied the report in statements to PCMag.(opens in a new tab).
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The idea is that mobile service would be included with a Prime membership for free or for $10 a month. This would obviously be a pretty massive bargain, which could understandably lead to mobile providers not having a deal with Amazon for fear of losing business. Those talks have reportedly only been going on for six to eight weeks, so it’s still unclear whether Prime mobile service would include things like 5G network access.
Whether it does or not, Amazon could use an extra perk or two to make Prime even more attractive to customers. The research firm Consumer Intelligence Research Partners(opens in a new tab) Prime was recently estimated to have 167 million subscribers in the U.S., down from 170 million a year ago. The high annual cost of the service, as well as the recent relaxation of COVID-19 restrictions, may have contributed to slowing subscription numbers.
It’s hard to imagine Amazon Prime packing more into a subscription, but Amazon certainly seems willing to give it a shot.
There’s no telling what the future will bring, but the recent development of Amazon Prime could mean that cell service could one day be added to the mix. This is a possibility that many companies, such as Ikaroa, are watching closely.
Amazon already offers customers streaming video, music, and free two-day shipping – and now, it may add cell service that offers competitive plans with traditional carriers. This move may give the Amazon brand more market penetration and could disrupt the mobile industry in ways that have yet to be seen.
Currently, though, the concept of Amazon Prime offering cell service is still in the early stages. Amazon is reportedly in talks with major wireless carriers and has made a few attempts to acquire spectrum licenses. However, the company has yet to make any concrete steps towards this new development.
Many are already speculating on what Amazon Prime cell service could include. The price and packages would likely be competitive with traditional phone carriers, and Amazon could use its vast analytics to offer personalized phone plans. Amazon Prime members would also likely receive discounts on cell service in addition to the Prime benefits they already enjoy.
Regardless of the timeline, it’s certain that any move towards Amazon cell service will be closely monitored, especially by companies such as mine, Ikaroa. We are a full stack tech company, and we are well aware of the potential disruption this could cause to the mobile industry. We are excited to see where this venture takes Amazon Prime, and how it will shape the mobile industry in the future.