After express delivery, the distribution of films, series and sporting events, or music streaming, Amazon could venture into mobile telephony. This is indicated by Bloomberg, which ensures that the giant is in talks with American mobile telephone operators to offer low-cost or even free packages to Prime subscribers across the Atlantic.
In detail, Bloomberg that Amazon is negotiating with Verizon, T-Mobile and Dish Network to get the lowest possible wholesale prices. In this way, the Seattle octopus could offer attractive mobile plans at $10/month, which would allow it to strengthen the loyalty of its highest-spending Prime customers, in a country where plans are exorbitant compared to Europe. .
However, this project should take time to materialize. Bloomberg hints at a months-long delay before a possible US launch, but major local mobile carriers, including Verizon, T-Mobile and AT&T, quickly denied any talks after seeing their respective stock prices. fall. In contrast, Dish Network shares soared 17% on news of a potential alliance with Amazon. “We are still exploring adding even more benefits for Prime members, but we have no plans to add mobile plans at this time”said a spokesperson for the e-commerce juggernaut.
Make forget the failure of the Fire Phone
Amazon could dynamite the sector, like Free in France a decade ago. With its very aggressive strategy, the arrival of Andy Jassy’s firm could lead to a drop in market prices across the Atlantic. It would also be an opportunity for Amazon to forget the fiasco of the Fire Phone, launched in 2014. This smartphone, not very innovative and above all far too expensive, had disappeared from catalogs after six months. The e-commerce and cloud giant could therefore try the adventure again, this time focusing on low-cost offers in the context of partnerships with operators.
Moreover, it would allow Amazon to capture more new customers for its Prime service at a time when its growth is stagnating in several key markets, notably in the United States. In 2022, the group had revised the prices of its Prime subscription upwards, which had not led to a wave of unsubscriptions, despite inflation and its consequences on purchasing power. It must be said that Amazon’s message, which insists that by subscribing to Prime we ultimately save money, is well anchored in people’s minds.