According to a Bloomberg report, tech giant Amazon (AMZN) could be in discussions with telecom giants Verizon Communications (VZ), AT&T (T), and Dish Network (DISH) to offer nationwide mobile phone service at a low cost of around $10 per month or possibly free to its Prime subscribers.
This news sent DISH’s stock soaring while Verizon and AT&T were both down in morning trading at the time of writing on Friday. Dish has the most to gain from this deal as it attempts to transform itself into a cloud-based wireless carrier. However, the company is carrying distressed debt and looking at new sources of funding to enable it to launch its Boost Infinite wireless service.
Dish is already working with Amazon as its Amazon Web Services (AWS) provides the cloud computing network to run its wireless service.
An Amazon spokesperson told Reuters following the news, “We are always exploring adding even more benefits for Prime members, but don’t have plans to add wireless at this time.”
Analysts are bullish about AMZN stock with a Strong Buy consensus rating based on 35 Buys and one Hold.