According to media reports, Amazon is planning to enter the mobile phone business. But the company denies it. Who would benefit from it?
Munich – Whether it's online shopping or streaming, Amazon is the giant in many industries in Germany and around the world, repeatedly making billions in profits. Now the group could further expand its offering. According to reports from the US news site Bloomberg, Amazon could now be planning a mobile phone offer for its Prime members.
Amazon in the mobile business? Fares could be very cheap or even free
This follows from conversations with informants, according to Bloomberg. Amazon would currently be talking to several carriers to be able to offer cheap or even free mobile for Prime members. The U.S. companies Verizon Communications Inc., T-Mobile US Inc., which belongs to Deutsche Telekom, and Dish Network Corp. are the negotiating partners. AT&T had also been involved in the weeks before.
According to Bloomberg, these negotiations could lead to Amazon offering Prime customers mobile communications for as little as $10 a month, or even for free.
Amazon's mobile phone tariffs? Companies and three mobile operators deny rumours
"We are constantly trying to offer even more benefits to our Prime members, but currently have no plans to add wireless connectivity," Amazon spokeswoman Maggie Sivon said in a statement to Bloomberg. And T-Mobile, AT&T and Verizon also denied the rumors. Dish declined to comment when contacted by Bloomberg.
Reports on Amazon mobile communications: Telekom shares fall significantly
Although the rumors have not yet been confirmed, the impact of the report was very evident in the stock market. The wave did not stop at Deutsche Telekom either. The company's shares fell by 9.1 percent in Germany and the shares of the American T-Mobile, AT&T, and Verizon also fell. Dish's shares, on the other hand, jumped a full 18 percent.
The shipping giant Amazon is to enter the mobile phone business. © Andreas Franke/imago/Archivbild
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Amazon in the mobile business: Dish as a big winner
But how likely is it really that Amazon will enter the mobile phone business? For the mobile phone industry, Amazon's entry would probably be a double-edged sword. On the one hand, there could be more use of the newly built 5G network. On the other hand, Amazon would be a big competitor for T-Mobile and Co. Because with the cheap prices that Amazon indicates, these providers would be less likely to keep up.
However, the big winner is Dish. The company is already working with Amazon and is currently looking for new financing options. The company is currently trying to transform itself into a cloud-based wireless carrier and wants to compete with Verizon and AT&T. "It's seen as a salvation for Dish," Peter Supino, an analyst at Wolfe Research, told Bloomberg about the possible deal with Amazon.
Other changes are also planned at Amazon. Amazon Prime, among others, could change a lot. Even the name could be affected.
