Shares of Cell Carriers Fall After Report on Amazon Talks to Offer Mobile Phone Service -- Update

By Will Feuer

Shares of major cellular carriers Verizon Communications, AT&T and T-Mobile US fell after a report said Amazon.com is in talks with carriers about offering low-cost or free nationwide mobile phone service to Amazon Prime subscribers.

Following the article from Bloomberg, Verizon said it isn't in talks with Amazon for the resale of Verizon's wireless network and T-Mobile said it isn't in talks with Amazon to add its wireless plans to Amazon's Prime service. AT&T declined to comment.

Shares of the big carriers rose off their lows for the day after releasing statements and amid a broad market rally.

Verizon stock fell 3.1% to $34.61 in afternoon trading, while shares of AT&T and T-Mobile fell 4.3% and 6.5%, respectively.

Bloomberg reported earlier Friday that Amazon is negotiating with Verizon, T-Mobile and Dish Network to get the lowest possible wholesale prices to offer Prime members wireless plans for $10 a month or possibly for free. Amazon's talks with cellular carriers have been going on for six to eight weeks and also have included AT&T at times, Bloomberg said, but the mobile service plans may take several more months to launch and could be scrapped.

"We are always exploring adding even more benefits for Prime members, but don't have plans to add wireless at this time," said Bradley Mattinger, an Amazon spokesperson.

Shares of Amazon rose 1.8% to $125.01 in afternoon trading Friday.

Dish stock jumped more than 18% to $7.43 in afternoon trading.

The Wall Street Journal reported last week that Dish also was in talks to sell wireless plans through Amazon's U.S. website, a move that could help Dish roll out its 5G network.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

June 02, 2023 13:33 ET (17:33 GMT)

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