E-commerce giant, Amazon has disclosed that the company is in negotiations with multiple telecom companies about providing low-cost or free mobile phone service to US Prime users.
According to Bloomberg News, Amazon is working with Verizon Communications, T-Mobile US, and Dish Network to offer wireless services for $10 or less to Prime subscribers. Previously, Amazon had discussions with AT&T.
Shares of Verizon, AT&T, and T-Mobile fell 4% to 7%, while Amazon rose 2%. Dish Network increased by 17%. Last week, it was rumoured that Amazon and Dish were in talks.
The aforementioned telecom companies did not respond to Reuters’ requests for comment.
“We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time,” an Amazon spokesperson told Reuters.
The alleged talks come as Amazon experiences a drop in new sign-ups for its Prime service, its core loyalty programme that provides users with speedier shipping and video streaming.