Amazon Prime’s Potential Wireless Plan Aims to Slash Phone Costs Dramatically
Amazon Prime members might soon have another reason to rejoice as the e-commerce giant explores a groundbreaking offer that could dramatically reduce monthly cell phone bills. According to Bloomberg, Amazon is potentially discussing with major wireless carriers, including T-Mobile, Verizon, and Dish, to introduce a Prime Wireless plan. This plan, exclusively available to Amazon Prime members, could cost as little as $0 to $10 monthly.
While the talks are ongoing and the plan’s launch is still uncertain, this development could disrupt the wireless industry and transform how consumers approach their phone bills. Amazon’s reputation as a disruptive force, coupled with its willingness to invest heavily to capture market share, puts wireless carriers in a position.
However, Amazon spokesperson Bradley Mattinger clarified that the company has no plans to add wireless services to its Prime membership benefits. Similarly, T-Mobile and AT&T denied discussing wireless inclusion with Amazon, nevertheless, if the service does come to fruition.
For Amazon, this move primarily aims to boost Prime membership numbers and enhance subscriber loyalty through valuable perks. The ability to provide a low-cost cell phone option could prove enticing to existing and prospective members. Even at $10 per month, the Prime Wireless plan would offer substantial savings compared to the average American’s monthly phone bill, which sits at $144, as reported by JD Power.
Bloomberg’s report suggests that Amazon intends to leverage existing wireless networks by operating as a mobile virtual network operator (MVNO), thus bypassing the need for costly infrastructure development. MVNOs typically provide more affordable plans, with the average bill for MVNO subscribers in the US amounting to $77, according to JD Power. Some MVNOs even offer no-frills, low-cost plans starting at around $15.
Although the absence of immediate comments from Dish and Verizon regarding Amazon’s potential wireless venture, the company’s prior foray into the wireless market with the ill-fated Fire phone is well-known. Former CEO Jeff Bezos openly admitted the failure of the Fire phone, acknowledging its contribution to Amazon’s refocusing efforts on successful projects like Echo and Alexa.
As Amazon continues to explore innovative strategies to attract and retain Prime members, a Prime Wireless plan could be a game-changer. The allure of significantly reduced cell phone costs coupled with the convenience and perks of Prime membership might create an unbeatable package for consumers. However, only time will tell whether this ambitious plan will become a reality and redefine the mobile industry.