(Reuters) – Amazon.com Inc is interested in buying a prepaid cell phone wireless service Boost Mobile of U.S. carriers T-Mobile US Inc and Sprint Corp, two sources familiar with the matter said on Thursday.
FILE PHOTO: The logo of Amazon is seen in the company’s logistics centre in Boves, France, 13 May 2019. REUTERS/Pascal Rossignol
Amazon is considering buying Boost, especially since the deal would allow it to use T-Mobile’s wireless network for at least six years, one of the sources said. Amazon would also be interested in the wireless spectrum can be divested, the source said.
Amazon declined to comment. T-Mobile and Sprint not immediately respond to requests for comment.
It was not immediately clear why the largest AMERICAN online retailer wants the wireless network and the spectrum.
But Amazon, which began its business by selling books, has a long history of exploring new ventures, such as creating original TV shows for Amazon Prime members. It is now one of the Four Large technology companies along with Alphabet Inc., Apple Inc. and Facebook Inc, and is a leading cloud service provider.
T-Mobile and Sprint have offered concessions, including the sales, is to reduce their market share in the prepaid wireless business and gain regulatory approval for their planned $26 billion merger.
The U.S. Department of Justice would have to follow that the purchaser of a divested asset to ensure that it will remain viable, and the preservation of competition.
The carriers are also considering the divestment of the wireless spectrum, or airwaves that carry data, to carry out the merger.
The merger, if approved, would be the United States with three wireless carriers instead of four. Some consumer advocates have raised concerns that the merger could raise prices for wireless users and have called for an extra competitor.
The sales Boost could get up to $3 billion, the potential bidders previously told Reuters.
Reporting by Angela Moon and Sheila Dang in New York and Diane Bartz in Washington; editing by Kenneth Li, Rosalba O’brien and Richard Chang