Amazon explores mobile Prime plan with US operators

Amazon reportedly entered talks with T-Mobile US, Dish Network and Verizon to bundle in low-cost data plans with its Prime service, in a bid to boost customer loyalty of the subscription offering.

Bloomberg stated the discussions are aimed at securing the lowest wholesale prices for Amazon to provide its paying customers with a monthly wireless package priced at $10 or possibly with no added cost.

A Prime membership bundle includes music and video streaming, grocery services and speedy delivery. Customers have however reportedly stagnated since its annual membership package increased to $139 from $119.

Adding low-cost mobile data plans to Prime forms part of Amazon’s wider strategy to compete with rival Walmart, which offers similar perks to the current Prime offering at a cheaper price point.

There are however fears a cheap mobile plan by Amazon will undercut the pricing power of operator giants, potentially migrating their customers to Amazon, Bloomberg sources added.

One of the three operators involved in the discussions, Dish, is also reportedly in discussions to sell its Boost Infinite service on Amazon.

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