Amazon in Talks to Offer US Prime Members Mobile Service

Amazon is reportedly in talks with major telecom companies to offer a mobile service to its Prime members in the U.S. This move has caused significant market reactions, with Amazon's stock rising and telecom stocks falling. The plan involves Amazon accessing wholesale prices to offer low-cost or free mobile services to Prime members, potentially increasing the utilization of 5G networks. This development could disrupt the telecom industry, as Amazon's financial strength allows it to undercut pricing, affecting the future of carriers like Verizon, AT&T, and T-Mobile.

Which companies is Amazon reportedly in talks with to offer mobile services?

• Verizon, T-Mobile, and Dish

• AT&T, Sprint, and Verizon

• Dish, Sprint, and AT&T

• T-Mobile, Sprint, and AT&T

What is the expected benefit of Amazon's potential deal for 5G networks?

• Decreased network speed

• Reduced network coverage

• Higher utilization of 5G networks

• Increased cost for consumers

How did the market react to the news of Amazon's potential entry into mobile services?

• All telecom stocks rose

• Amazon's stock decreased

• Verizon and AT&T stocks increased

• Dish saw a significant increase, while T-Mobile dropped

What is a potential impact of Amazon entering the mobile service market?

• Increased prices for Prime members

• Stability in existing pricing models

• Disruption and undercutting of current pricing

• No impact on traditional carriers

What is the significance of Amazon's financial strength in this context?

• It enables Amazon to undercut existing pricing

• It allows Amazon to offer higher prices

• It limits Amazon's market entry

• It has no impact on pricing strategies