With over 300 million user accounts and over 1.9 million partners globally, Amazon already provides many services; now comes word that the company is considering giving free mobile cellular service.
The internet giant allegedly discusses with significant cellphone providers, including Verizon, T-Mobile, and AT&T, to get discounted or even free phone plans for Prime members. The proposed changes might allow Amazon to provide cellular service to clients for $10 per month or less.
Amazon corporate states they are constantly exploring adding even more benefits for Prime members.
Amazon has reached a bit of a plateau after increasing its yearly membership fee from $119 to $139 per year, which is one reason why the business may seek to launch its phone plan to attract more consumers. Since Verizon offers the cheapest unlimited individual plan at around $60 per month, an affordable Amazon package might damage the three leading phone carriers.
Additionally, since Amazon’s main competitor, Walmart, offers a cheaper membership plan with the same benefits as Prime plus free food delivery on purchases over $35, the company is willing to do just about everything to entice customers.
The new mobile service concept might go in a few different directions for the tech behemoth. It can resell mobile services from larger carriers, provide wireless exclusively to Prime members, or provide Prime wireless to anybody who wishes to switch carriers and join Prime.
This can be terrible news for the major mobile service providers. They prefer a more consolidated market since it means greater profits for themselves; as a reseller,
Amazon wouldn’t have to invest millions in developing its mobile network. On the other hand, the major phone companies may recoup some of their costs by offering bundles of wireless and other services, such as cable and streaming media.
The fact that Amazon can access so much of your data is perhaps the biggest drawback of this plan. Amazon already has a wealth of personal information on its customers thanks to Prime memberships, product searches, customer gadget purchases (such as the Alexa device), and more.