Big US telcos ‘not in talks’ with Amazon over mobile service
carriers have denied they in talks with Amazon.com to offer low-cost wireless services to its Prime members.was negotiating to get the lowest possible wholesale prices and could offer wireless plans for US$10/month or lower to Prime members through the partnerships, including a possible tie-up with Dish Network.
“AT&T is not in discussions with Amazon to resell wireless services,” a company spokesman said. a Verizon spokesman said the company “is not in negotiations with Amazon regarding the resale of our wireless network. Our company is always open to new and potential opportunities, but we have nothing to report at this time.”
Several analysts said the online retail giant’s entry could lead to major disruptions in the telecommunications space as it could offer cheaper plans in a country with some of the highest wireless charges in the world.“Amazon could certainly put a lot of its weight behind it and undercut competitors,” said Christopher Ali, professor of telecoms at Penn State University. “We might actually see cellphone prices go down, which would be a great thing.
For Amazon, a deal could draw more customers to its Prime service at a time growth in key markets including the US has plateaued. The company’s revenue growth slowed to its lowest in at least 20 years in 2022 as businesses and consumers cut back on spending in a tough economy.
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