Amazon reportedly entered talks with T-Mobile US, Dish Network and Verizon to bundle 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 rate for Amazon to provide its paying customers with a monthly wireless package priced at $10 or possibly with no added cost. AT&T has also been involved in discussions in the past, added the report.
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 from $119 to $139.
Adding low-cost mobile data plans to Prime forms part of Amazon’s wider strategy to compete with rival Walmart, which offers similar perks at a cheaper price point.
Bloomberg added there are fears a cheap mobile plan by Amazon will undercut the pricing-power of operators giants and potentially dilute their subscriber base.
Dish Network reportedly also entered talks to sell its Boost Infinite service on Amazon.
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