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HomeBusinessIs Amazon Prime offering free or low-price mobile service for members

Is Amazon Prime offering free or low-price mobile service for members

Photo by Christian Wiediger

Amazon inc. (AMZN) offers Amazon Prime membership a paid subscription-based model that offers loads of benefits to its members. Although the company doesn’t report the number of Prime members, sites say that there could roughly be 150 million prime subscribers in the U.S. The e-commerce giant is always looking to add more perks to keep its existing members and attract new members. Now, reports say that the company is in talks with Verizon Communications (VZ), T-Mobile U.S. and Dish Network as it might offer free or about $10 mobile plans to its Amazon Prime members in the U.S.


Free or low mobile plans for Prime members by Amazon was first reported by Bloomberg, who could not confirm the news. However, the Verge reported that all the wireless networks named by the outlet denied that they were in talks with Amazon to offer free or extremely low-priced subscription plans.

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In 2014, Amazon released a $199 Fire Phone that was a failure. The e-commerce giant discounted it to 99 cents and finally discontinued the phone. CEO Jeff Bezos acknowledged that it was a failure but also said that the company had learnt a lot after its launch.

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Amazon is also developing a satellite internet service. It is called Project Kuiper. It is expected to become operational by the end of next year.

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Amazon Prime is the most successful package delivered by Amazon to its bottom line. The company has reported over $25 billion per year from Amazon Prime subscriptions. However, it is seeing some competition from Walmart which offers a lower subscription plan but is reportedly far away in numbers from the millions of Amazon Prime subscribers.

As both Amazon Prime and Walmart Plus increase the freebies with monthly or annual subscriptions, it is the consumer who stands to gain as both the retail giants want to capture a larger slice of the subscription pie.

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What to Expect From Walmart’s Upcoming Q1 2023 Earnings and Why is it a Buy?

 

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