AH Tech Talk: Why Amazon As A Wireless Carrier Could Make Some Sense

The wireless industry is an extremely competitive one, so it may have been a little bit of a shock when we learned about the possibilities of Google potentially looking to become a wireless carrier by way of an MVNO for Sprint and T-Mobile. They aren't the only companies potentially interested in stepping outside their usual category of business though, as Venture Beat reports that Amazon may be looking into this particular avenue as well. It may be hard to fathom just why either Amazon or Google would want to do such a thing, but it actually isn't all that difficult to theorize some reasons why the largest online merchant could have an interest in providing you with more than just a place to shop.

First and foremost, you have to remember that Amazon is at its core, a shopping business. Their main goal is always going to be tying things back to the online shopping experience or some other form of revenue. Take the Amazon Fire TV for example. Yes this is a physical product that Amazon sells, but they're not selling you a set top box to make massive amounts of money on set top boxes. They're drawing customers in with the premise of providing you with a place to access Amazon Prime video content. Which costs $99 annually. So multiply that by even just a million units, and they've just gained a load of new revenue if not one of those customers already owned a Prime account.

If Amazon were to take on becoming a wireless service provider, they would be doing the same thing there as they would with other products, finding ways to ultimately bring you back to Amazon to shop. Amazon is and has always been in the business of selling things to us, and a wireless service could be a great way to deliver that opportunity in yet another way. Sure, an Amazon cell service seems a little bit out there, but no more out there than having Google be your next carrier. Amazon's Fire Phone was also a risky idea, and while it didn't necessarily pan out how Amazon probably hoped, they now have an opportunity to improve on the Fire Phone with a second device as they now know what people loved and hated about it. Should they turn around an deliver an amazing device the second time around(assuming they'll release a 2nd gen. device)they could make it enticing just enough to make it hard to pass up if they gave it away for free with the connection of an Amazon wireless plan, and that's how they could get more people to shop on their site, or have an outlet for subscribing to Prime for the instant video. Let's not forget yet another device people could use to buy and read e-book on via the kindle app.

Amazon could also offer other things to buyers using their service and a fire phone when shopping on their site, like discounts specifically for Amazon Wireless subscribers, and of course free Amazon coins, something that they routinely give out for free whenever you buy specific stuff like any number of their Kindle products or Fire tablets. They could even work in some sort of deal fore customers who spend a certain amount after so many months to end up with a free month of service. All of these could be decent enough reasons for Amazon to offer wireless service, and it all ties back to getting us to buy and shop on Amazon, creating even more revenue for them. What are your thoughts on Amazon offering a wireless service? Would you subscribe if they had the right offering?

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