Amazon reportedly in talks to bundle mobile phone service as Prime perk

Amazon is reportedly considering offering mobile connectivity to its customers alongside a US Prime subscription, according to a report by Bloomberg. It reportedly had negotiations with existing US carriers including Verizon, T-Mobile, Dish and occasionally AT&T about using their networks to offer mobile connectivity, which would then be available to Prime subscribers either as part of their existing subscription, for a nominal fee of $10 per month.

In a statement, Amazon spokesperson Bradley Mattinger denied that the company was actively planning to add wireless connectivity to Prime. “We’re still exploring adding additional benefits for Prime members, but we don’t plan to add wireless at this time,” Mattinger said. Bloomberg notes that the plans could take months to launch and could be scrapped entirely.

The news of the talks comes as Prime subscriber growth is believed to have slowed after last year’s price hike, which saw the cost of an annual Prime membership drop from $119 to $139. Amazon is also facing increased competition from Walmart Plus, a $98/year subscription service from the retailer that offers free grocery delivery on orders over $35. Walmart last year added a Paramount Plus subscription to its subscription service, which competes with Amazon’s own Prime Video streaming service.

Although Amazon would pay wireless carriers to use their networks under the plans, Bloomberg notes that a partnership with the e-commerce giant could be a double-edged sword for them. If Amazon prices its wireless offering as low as Bloomberg‘s report suggests that it will, it risks competing with operators for their existing subscribers. Amazon has historically proven that it’s willing to spend big on Prime subscriber growth.

The tech giant, Google, already offers its own wireless network called Google Fi. Like Amazon’s supposed plans, Google Fi is what’s called a Mobile Virtual Network Operator, or MVNO, and operates on T-Mobile’s nationwide network as well as a network of hotspots. Wireless.