E-commerce giant Amazon (AMZN) is planning to offer free nationwide mobile phone service to its Prime members in the U.S., according to multiple media reports.
The technology company is reportedly negotiating with American wireless internet providers Verizon (VZ), T-Mobile (TMUS), Dish Networks (DISH), and AT&T (T) to get the lowest possible wholesale internet prices.
According to the media reports, Amazon wants to offer its Prime members unlimited wireless plans for $10 U.S. a month or possibly for free to help drive loyalty among its customers and sell new memberships.
The talks have been ongoing for about eight weeks and may take several more months to conclude.
The share prices of most of the U.S. internet providers fell on news of Amazon’s plans, with T-Mobile’s stock dropping 8.4% and AT&T’s share price declining 5%.
Amazon’s U.S. Prime members currently pay $139 U.S. a year for benefits such as free delivery, video streaming, and access to more than 100 million songs.
Prime memberships have largely flatlined in the U.S. after Amazon increased the annual price from $119 U.S. a year ago.
About 167 million Americans had Prime memberships as of March this year, unchanged from a year earlier.
It’s not clear how Amazon offering mobile phone service would impact its Prime members in Canada or other countries outside of the U.S.
Amazon’s stock is flat (down 0.43%) over the past 12 months at $124.25 U.S. per share.
