As if Amazon didn’t already offer a tonne of services, there are persistent rumours that the retail titan, which boasts more than 300 million active user accounts and more than 1.9 million selling partners globally, is considering providing free wifi cell service. If the rumours are to be true, the tech giant is negotiating low-cost or possibly free phone plans for Prime users with wireless phone providers including Verizon, T-Mobile, and AT&T. If the plans were to materialise, Amazon might be able to sell wireless contracts to its consumers for as little as $10 per month.
We contacted Amazon, and while a spokesman declined to disclose any continuing discussions, he did provide the following statement:
We constantly look at ways to give Prime members even more benefits, but we don’t currently have any plans to introduce wireless. – Bradley Mattinger, spokesman for Amazon
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What would motivate Amazon to launch a phone plan?
The crucial phrase there, I believe, is “at this time.” To draw in additional consumers, though, is one of the reasons Amazon would want to launch its own phone plan. The firm has experienced some slowdown after hiking the cost of its yearly subscription from $119 to $139. The three big phone carriers might suffer greatly from a low Amazon plan, given the cheapest unlimited individual plan costs Verizon roughly $60 each month.
Your cell phone may soon receive a mobile service from Amazon. (CyberGuy.com)Additionally, Amazon would do just much anything to outperform Walmart, a rival competitor, which offers free grocery delivery on orders of at least $35 and a lesser membership plan with similar benefits to Prime.
What would a new phone plan enable Amazon to do?
The tech giant has several options for this new phone plan concept. It might opt to offer wireless to its Prime subscribers at a competitive price, resell mobile services from bigger carriers, or even provide Prime wireless to anyone looking to switch services and sign up for Prime.
This might be bad news for the major cell providers. Since Amazon simply wants to become a reseller, the firm wouldn’t have to worry about investing millions of dollars on building its own mobile network. They want fewer competitors so that they can make more money for themselves. This could also be a chance for the major phone carriers to recoup their investment as many wireless plans are now sold as bundles with things like cable and streaming services.
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What possible drawbacks may there be to this Amazon phone plan?
The amount of data that Amazon will have access to is likely this phone plan’s biggest drawback. With the help of people’s devices like the Alexa device, their prime memberships, the searches they make, and more, Amazon already gathers a tonne of information about individuals. This phone plan would probably only offer the corporation more access to customers’ data so they can deliver more precisely targeted advertisements and increase their revenue from them.
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