Yahoo Finance AT&T and other telecom stocks drop on report Amazon looks to offer mobile phone service to Prime customers
Telecom stocks fell Friday on a report Amazon may offer mobile phone service to Prime customers.
The e-commerce giant is in talks with wireless carriers for a low-cost or free service, Bloomberg said.
AT&T dropped 4%, T-Mobile lost 7%, and Verizon slipped 3%, while Dish jumped 18%.
Telecom stocks sold off on Friday on a report that said Amazon is looking to offer mobile phone service to its Prime customers.
The e-commerce giant is in talks with Verizon Communications, T-Mobile US, and Dish Network for wireless plans that would cost $10 a month or possibly for no cost at all, sources told Bloomberg.
If it enters the mobile market, Amazon could resell wireless service from one of the top carriers, according to Bloomberg, noting that Dish could be a big winner as its plan to transform into a cloud-based mobile company from a satellite-TV provider has hit headwinds.
Shares of AT&T dropped 4%, T-Mobile lost 7%, and Verizon slipped 3%. Meanwhile, Dish jumped 18%.
Negotiations have been taking place for several weeks and also included AT&T at times, but the plan may still be several months away or may not happen, Bloomberg said.
"We are always exploring adding even more benefits for Prime members, but don't have plans to add wireless at this time," an Amazon spokesperson told Insider via email.
Amazon had 167 million Prime subscribers as of March, which was flat from a year ago, according to Consumer Intelligence Research Partners.
Members pay about $139 a year for free shipping on orders as well as access to streaming videos and music, but competition from rivals like Walmart has been heating up.
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