Amazon in talks to offer free mobile service to Prime members

Amazon.com has been talking with wireless carriers about offering low-cost or possibly free nationwide mobile phone service to Prime subscribers, according to people familiar with the situation.

The company is negotiating with Verizon Communications, T-mobile US and Dish Network to get the lowest possible wholesale prices. That would let it offer Prime members wireless plans for $10 a month or possibly free and bolster loyalty among its biggest spending customers, the people said, who spoke on the condition of anonymity to discuss a private matter.

The talks have been going on for six to eight weeks and have also included AT&T at times, but the plan may take several more months to launch and could be scrapped, one person said.

Dish shares jumped 24 percent Friday in New York, the most in three years, since a deal with the retail giant could help the struggling satellite-tv company as it transitions to become a national wireless carrier.

Meanwhile, T-mobile fell 8.4 percent, AT&T dropped percent and Verizon slid 4.8. percent. The big three national carriers could see their own subscribers flee to a cheaper option at Amazon. Deutsche Telekom, which holds a majority stake in T-mobile, fell 8.8 percent in Germany.

“We are always exploring adding even more benefits for

Prime members, but don’t have plans to add wireless at this time,” Amazon spokesperson Maggie Sivon said in a statement.

T-mobile, AT&T and Verizon all said they were not currently in discussions with Amazon about wireless service. Dish declined to comment.

Amazon’s U.S. Prime subscribers pay $139 a year for privileges like speedy free delivery, video streaming and access to 100 million songs. Analysts say Prime membership has stagnated in the country since Amazon boosted the annual price from $119, a sign that a subscription is less attractive to consumers struggling with a stubbornly high inflation rate.

Amazon is competing with Walmart, whose $98-a-year Walmart+ membership is emerging as a lower-cost alternative offering many of the same perks as Prime and free grocery delivery on orders of at least $35. Amazon in February increased its free grocery delivery threshold to $150 from $35.