Amazon.com Inc. is engrossed in acquiring prepaid cellphone wireless business Boost Mobile from US carriers Sprint Corp, and T-Mobile US Inc. two references familiar with the matter stated recently. Amazon is contemplating buying Boost mainly because the agreement would allow it to use T-Mobile’s wireless network for, at shortest six years, one of the sources stated. Amazon would also be drawn in any wireless spectrum that could be dispossessed, according to officials involved in this scenario.
Various news portals tried to contact Amazon for an official comment however the tech giant declined the same. On the other hand, T-Mobile and Sprint did not directly respond to requests for any remark. It was not instantly clear why the most important US online retailer would require the wireless network and spectrum.
Amazon has now been building experience by proposing phone calls through its Echo Connect product, which utilizes a person’s home phone service and enables an Alexa-enabled voice-activated speaker to proffer phone calls. Amazon, which began out selling books, has a long past of exploring new investments, such as making independent TV shows for Amazon Prime members. It is now single largest of the Big Four technology businesses along with Apple, Alphabet, and Facebook, and is a preeminent cloud services provider.
Sprint and T-Mobile have already promised to sell Boost as part of measures to decrease their market share in the prepaid wireless industry and gain regulatory permission for their planned USD 26 billion mergers. The US Justice Department would require to scrutinize the customer of a divested asset to guarantee it would stay viable and protect competition.
The transmitters are also considering dispossessing wireless spectrum, or airwaves that carry data, in order to accelerate the merger through. The merger, if confirmed, would leave the United States with three wireless transmitters instead of four. Some customer advocates have exalted concerns that the merger could boost prices for wireless users and have summoned for an additional competitor. The sale of Boost could get up to USD 3 billion; potential bidders earlier told few news portals.