Telecom stocks fall on report Amazon considers launching mobile service for Prime members

Amazon is successful talks with respective wireless carriers astir launching a mobile work for Prime members, according to a study from Bloomberg.

The quality sent shares of telecom stocks little Friday. Verizon fell much than 4% successful aboriginal trading, portion T-Mobile slid arsenic overmuch arsenic 7%. AT&T's banal was down much than 5%. Dish shares surged much than 14%.

The e-retailer is negotiating with Verizon, T-Mobile and Dish astir the anticipation of reselling their mobile work to its Prime members astatine low-cost oregon perchance free, Bloomberg reported. The discussions person been going connected for six to 8 weeks and person besides included AT&T, but it could beryllium respective much months earlier a program materializes, according to the report.

"We are ever exploring adding adjacent much benefits for Prime members, but don't person plans to adhd wireless astatine this time," Amazon spokesperson Bradley Mattinger said successful a statement.

Amazon has antecedently experimented successful the mobile category, launching its ill-fated Fire Phone successful July 2014 earlier scrapping it a twelvemonth later. More recently, it has focused connected high-speed net done its Kuiper program, which aims to physique a web of 3,236 satellites successful debased Earth orbit.

A mobile program could service arsenic an charismatic hook for Amazon to lure successful much Prime subscribers. Launched successful 2005, Amazon Prime members wage $139 a twelvemonth for entree to escaped two-day shipping, entree to exclusive movies and TV shows, arsenic good arsenic newer benefits similar generic medicine discounts and Grubhub transportation perks.

Amazon has been looking for ways to pull much Prime members arsenic it faces increasing contention with Walmart's Walmart+ loyalty program, and concerns of slowing rank growth. The institution had much than 200 cardinal subscribers worldwide as of April 2021.

By partnering up with a institution similar Verizon oregon Dish, Amazon would fundamentally relation arsenic a mobile virtual web operator. Instead of owning its ain wireless network, the institution would acquisition information from a ample bearer and resell it to consumers.

Spokespeople for Verizon, T-Mobile, Dish and AT&T weren't instantly disposable to comment.