Amazon may be working on a new service to provide low-cost or even free mobile phone services in the United States. According to reports from TechCrunch, the company is in talks with major telecommunications firms such as Verizon, T-Mobile, Dish Network, and AT&T to include mobile phone service as part of its Prime subscription.

Amazon in talks with major telecom providers for Prime mobile phone service

In the initial phase, Amazon plans to charge users a reasonable fee of around $10. By entering the communication sector, Amazon aims to make Prime subscriptions more appealing and make customers less likely to cancel their subscriptions.

Considering that GSM companies have invested billions of dollars in 5G technology, it is not surprising that the wireless communication sector is growing. While it is unlikely that companies like Verizon and T-Mobile would directly compete with Amazon, they may find it difficult to resist benefiting from Prime customers.

A spokesperson for Amazon stated that the company is not currently planning wireless connectivity support for Prime. However, this is not Amazon’s first move in the telecommunications field, as they have been working on a satellite internet service called Project Kuiper, similar to Starlink.

It is believed that Amazon also wants to make Prime subscriptions more attractive. For example, Walmart, the largest retail company in the United States, offers a Walmart+ service for $98 per year, which includes access to Paramount+.