Has Amazon found the ultimate lock-in? Cheap cellphone service for Prime
(2023/06/02)
- Reference: 1685740028
- News link: https://www.theregister.co.uk/2023/06/02/amazon_mvno_us/
- Source link:
Analysis Folks in the United States could soon have another option for cheaper cellphone service: Amazon Prime.
Bloomberg [1]reports that Amazon is in talks with major US carriers, including Verizon, T-Mobile US, and Dish Network, to offer low-cost phone service to Prime customers.
The move isn't all that surprising. Mobile virtual network operators (MVNO) are a dime a dozen. Google Fi Wireless, Boost Mobile, Mint Mobile, and Straight Talk are just a handful of the dozens of options available in the US. These companies pay to use larger carriers' networks, then resell that access to customers at low prices.
[2]
Amazon reportedly plans to offer service for as little as $10 a month, though it's whispered the web giant is also considering offering the service at no cost to Prime subscribers. Prime customers already pay $139 a year for access to express shipping and Amazon's streaming services, so it could be a way to inspire customer loyalty.
[3]
[4]
We suppose it's a lot harder to cancel your Prime subscription if you have to go through the rigmarole of porting your number to another network or getting a new one.
Amazon is hardly the first major tech or e-commerce company to go down this road. As we said, Google has operated an MVNO service under the Fi brand for years, meanwhile Walmart has Family Mobile.
[5]Amazon finds something else AI can supposedly do well: Spotting damaged goods
[6]Energy efficiency starts to rock telcos' 5G infrastructure choices
[7]Amazon opens its ad-hoc Wi-Fi-sipping Sidewalk mesh to all manner of gadgets
[8]Cheating carriers could cost web-starved Americans billions in subsidies
There's no guarantee that Amazon will actually offer the service. The talks have reportedly been ongoing for the past six to eight weeks and have, at times, included AT&T in the mix. According to the report, it could be months before the House That Bezos Built starts rolling out service.
Amazon Ring, Alexa accused of every nightmare IoT security fail you can imagine [9]FYI!
It's worth noting that Amazon doesn't necessarily have to choose one carrier. It's not uncommon for MVNOs to pay for access to multiple networks to ensure nationwide coverage.
It's also unclear what customers might be giving up if they opt to purchase cell service through Amazon. While most MVNOs market unlimited talk, text, and data plans, just like the larger carriers, there are usually some asterisks that need to be taken into account.
[10]
Limits on data speed and capped limits, access to 5G spectrum, tethering, and streaming video quality are common caveats associated with cut-rate wireless providers. MVNO traffic also tends to be deprioritized, which means customers could see their data speeds slow to a crawl in congested areas.
The Register reached out to Amazon for comment on their reported plans; we'll let you know if we hear anything back. ®
Get our [11]Tech Resources
[1] https://www.bloomberg.com/news/articles/2023-06-02/amazon-talking-with-verizon-dish-t-mobile-to-offer-mobile-with-prime
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZHpmg2z8aihX5Y3vemTCLAAAAA8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZHpmg2z8aihX5Y3vemTCLAAAAA8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZHpmg2z8aihX5Y3vemTCLAAAAA8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2023/06/02/amazon_is_using_ai_software/
[6] https://www.theregister.com/2023/04/13/energy_efficiency_5g_infrastructure/
[7] https://www.theregister.com/2023/03/28/amazon_sidewalk_mesh_network/
[8] https://www.theregister.com/2023/02/09/inaccurate_broadband_coverage_maps_usa/
[9] https://www.theregister.com/2023/06/01/ftc_alexa_ring_amazon_settlement/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZHpmg2z8aihX5Y3vemTCLAAAAA8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://whitepapers.theregister.com/
Bloomberg [1]reports that Amazon is in talks with major US carriers, including Verizon, T-Mobile US, and Dish Network, to offer low-cost phone service to Prime customers.
The move isn't all that surprising. Mobile virtual network operators (MVNO) are a dime a dozen. Google Fi Wireless, Boost Mobile, Mint Mobile, and Straight Talk are just a handful of the dozens of options available in the US. These companies pay to use larger carriers' networks, then resell that access to customers at low prices.
[2]
Amazon reportedly plans to offer service for as little as $10 a month, though it's whispered the web giant is also considering offering the service at no cost to Prime subscribers. Prime customers already pay $139 a year for access to express shipping and Amazon's streaming services, so it could be a way to inspire customer loyalty.
[3]
[4]
We suppose it's a lot harder to cancel your Prime subscription if you have to go through the rigmarole of porting your number to another network or getting a new one.
Amazon is hardly the first major tech or e-commerce company to go down this road. As we said, Google has operated an MVNO service under the Fi brand for years, meanwhile Walmart has Family Mobile.
[5]Amazon finds something else AI can supposedly do well: Spotting damaged goods
[6]Energy efficiency starts to rock telcos' 5G infrastructure choices
[7]Amazon opens its ad-hoc Wi-Fi-sipping Sidewalk mesh to all manner of gadgets
[8]Cheating carriers could cost web-starved Americans billions in subsidies
There's no guarantee that Amazon will actually offer the service. The talks have reportedly been ongoing for the past six to eight weeks and have, at times, included AT&T in the mix. According to the report, it could be months before the House That Bezos Built starts rolling out service.
Amazon Ring, Alexa accused of every nightmare IoT security fail you can imagine [9]FYI!
It's worth noting that Amazon doesn't necessarily have to choose one carrier. It's not uncommon for MVNOs to pay for access to multiple networks to ensure nationwide coverage.
It's also unclear what customers might be giving up if they opt to purchase cell service through Amazon. While most MVNOs market unlimited talk, text, and data plans, just like the larger carriers, there are usually some asterisks that need to be taken into account.
[10]
Limits on data speed and capped limits, access to 5G spectrum, tethering, and streaming video quality are common caveats associated with cut-rate wireless providers. MVNO traffic also tends to be deprioritized, which means customers could see their data speeds slow to a crawl in congested areas.
The Register reached out to Amazon for comment on their reported plans; we'll let you know if we hear anything back. ®
Get our [11]Tech Resources
[1] https://www.bloomberg.com/news/articles/2023-06-02/amazon-talking-with-verizon-dish-t-mobile-to-offer-mobile-with-prime
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZHpmg2z8aihX5Y3vemTCLAAAAA8&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZHpmg2z8aihX5Y3vemTCLAAAAA8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZHpmg2z8aihX5Y3vemTCLAAAAA8&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2023/06/02/amazon_is_using_ai_software/
[6] https://www.theregister.com/2023/04/13/energy_efficiency_5g_infrastructure/
[7] https://www.theregister.com/2023/03/28/amazon_sidewalk_mesh_network/
[8] https://www.theregister.com/2023/02/09/inaccurate_broadband_coverage_maps_usa/
[9] https://www.theregister.com/2023/06/01/ftc_alexa_ring_amazon_settlement/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/networks&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZHpmg2z8aihX5Y3vemTCLAAAAA8&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://whitepapers.theregister.com/
I would consider this
I switched to MVNOs years ago, first AT&T's prepaid service and now Verizon's (Visible) as of the beginning of this year. The only gotcha is that you are generally at a lower priority for data than the more expensive postpaid plans which can impact you in places like stadiums where there isn't enough capacity to go around. Hopefully that will sort itself out as 5G is deployed more widely.
That's the nice thing about eSIM, I would be able to install Amazon Prime's free service (even if it isn't free I'm sure it would have a free trial) and try it out while keeping my current service to see if it works well enough.