top | item 36164462

Amazon Is in Talks to Offer Free Mobile Service to US Prime Members

79 points| jbredeche | 2 years ago |bloomberg.com

103 comments

order
[+] ctvo|2 years ago|reply
Oh boy. I can see it now:

By accepting this offer, you agree that Amazon has the right to collect anonymized web traffic data. This helps us improve your customer experience and offer you more relevant product suggestions when you search on Amazon.com and other Amazon affiliated properties.

Edit:

More interestingly perhaps, this allows Amazon to bypass the tracking restrictions at the platform level (say enforced by Apple, and has harmed Facebook).

Dropping to the network infrastructure level may make attribution and tracking on Amazon Advertising best in class across not just Amazon.com, but other properties? I don't know enough about the space so just musing, but I can't help feel this is a major development that's a bit more than Prime members now get more free stuff.

[+] shmatt|2 years ago|reply
Seeing as how all ISPs and mobile service providers already do all that and more, It really doesn't mean much to me if its AT&T or Amazon doing the tracking

AT&T is selling your phone calls and text messages to marketers, how to opt out

https://news.ycombinator.com/item?id=24756042

[+] colmmacc|2 years ago|reply
I work at AWS so I'm not neutral here, but how would this even work? Now that web and app traffic is encrypted, mobile providers can "see" what websites and app you access via your DNS lookups and destination IPs, and only some of the time, but that's about it. It doesn't get to the level of specific product purchases or much that you could put into a recommendation engine.
[+] gsatic|2 years ago|reply
Man all that data is over rated and worthless. Monitoring ppl 24x7 is like keeping tabs on your cat 24x7. Nothing that interesting is going on. That doesn't mean the data isn't over priced and over sold to schmucks. But that game has been going on for so long everyone playing the games knows how useless the data is.
[+] paxys|2 years ago|reply
All existing providers are doing exactly this. AT&T even has a plan where you can pay extra (something like $30/mo) to opt out of tracking.
[+] xnx|2 years ago|reply
This has to be some of the expected value for Amazon, but I would still trust Amazon more than other carriers (Verizon, AT&T, etc.).
[+] wintermutestwin|2 years ago|reply
My home ISP can steal my data too - that's why I only use it with a VPN.
[+] fisherjeff|2 years ago|reply
I love it. Just keep jamming more random stuff in there and periodically saying, “you know, we give you so many amazing benefits that we just have no choice but to raise the membership fee again!”
[+] LanceH|2 years ago|reply
Or split it off like they did with music storage (and deleting all but 250 of my stored songs), then peppering me with requests to upgrade to prime music 24/7.

I use prime because I have enough need for the shipping aspects of it that it works out favorably. Prime video is a very nice bonus.

Beyond that, there is a lot of hassle to being connected to Amazon. All their e-readers and audible can't help but advertise incessantly. These are apps where I want to open to the same place maybe a hundred times in a row as I read or listen to a long book. Yet, every time, it opens to the store page and I have drill down through my library to find my current book. If I'm on to my next book and search for it while in the library section of the app, it will pull up results from the store as well.

[+] kmfrk|2 years ago|reply
This is quite the timing after settling with the FTC for having no guard rails for employee access to Ring surveillance:

https://www.ftc.gov/news-events/news/press-releases/2023/05/...

[+] zaroth|2 years ago|reply
How did I miss this?!

Amazon employees had unrestricted access to all stored and live Ring video? Just one employee they mention used it to watch 50,000 videos of women in their homes… And they paid just $5.8mm to settle.

[+] deutschepost|2 years ago|reply
If privacy of users isn‘t forced on these companies, there will be a future where watching nude photos and videos of their customers will be a corporate benefit for Amazon executives.
[+] anon223345|2 years ago|reply
I actually cancelled prime because Amazon products these days suck, it’s become literally flea market shit

I probably would use Amazon cell phone service, but would be good if I could just buy that, not all of prime

[+] UniverseHacker|2 years ago|reply
What do you mean by "literally flea market shit"?

The last 3 items I ordered were obviously dirty used items missing parts, thrown loose in boxes without the factory packaging, and no padding. Like you said, it seems they are selling things that were found in the garbage, or at thrift stores/garage sales as new items.

At this point I am willing to pay 2x for an item I can trust from anyone but Amazon.

[+] vlovich123|2 years ago|reply
If they can take over my monthly phone bill that’s a huge gap. Prime is what $150? What almost 10x cheaper than my phone bill. Of course, the odds that it will offer an equivalent feature set is probably minimal so there will be a switching cost.
[+] yumraj|2 years ago|reply
> it’s become literally flea market shit

the funny thing is that one of the reasons I keep my prime is because it's a flea market where I can find stuff that I have an extremely hard time finding locally or need to pay exorbitant shipping, for 5-7 days delivery, from others.

[+] qgin|2 years ago|reply
What good quality products aren’t you able to get on Amazon anymore that you used to?
[+] bombcar|2 years ago|reply
The problem with bundling is it becomes harder to justify the more stuff you do not use. Prime Video already caused this for those who just wanted shipping.
[+] SketchySeaBeast|2 years ago|reply
Amazon's appeal is that any one of its services would be a decent price for what you get for the whole bundle. I pay $10 for my Prime membership when to get the same 4k video streaming on Netflix it is $20. With that $10 I also get free shipping and all these other features that I don't care if I use or not because just the video and shipping is a deal. If the prime price was $30 it'd be totally different math, but it's not, it's a deal any way I cut it.
[+] next_xibalba|2 years ago|reply
I expect you are in the minority in terms of rationale. For most people, the more you get in the bundle, the greater the incentive, the faster the flywheel spins for Amazon. This is why bundling is both so powerful as a strategy and is also often the target of anti-competitive complaints.
[+] bentcorner|2 years ago|reply
The flip side is that this makes Prime much more sticky - if you want to cancel Prime you need to find a new mobile provider and port your number over.

There's no way they keep Prime at the same price while also adding mobile service, but I guess we'll have to wait and see. Or maybe they do and start raising Prime prices in a year or two, knowing that said sticky-ness will keep people on Prime even if it starts costing close to the amount you'd pay for individual mobile service anyway.

[+] rabidonrails|2 years ago|reply
Amazon spokesperson was just quoted denying this. "We're always exploring adding more benefits for prime members but we do not have plans to add wireless at this time."

Reported by CNBC at 9:40ET

[+] ksey3|2 years ago|reply
This is interesting. I hope it grows in scope cuz AT&T needs to go die already.

I dont know how big Telcos havent been gobbled up by larger groups yet. They are such a slow moving gigantic revenue generating juicy targets. Big tech (advertising/media/cloud) is not big enough to do the gobbling. But big retail Walmart/Amazon are most def large enough to take out AT&T. And hope they do so cause I prefer dealing with them than the telcos.

[+] lotsofpulp|2 years ago|reply
ATT/Verizon/T-Mobile are dumb pipes subject to lots of regulation. The only one with decent profit margin is Verizon, and they are already the most expensive.

ATT is loaded up with debt from stupid attempts to not just be a dumb pipe, and I do not see much upside from buying any of them. Any future cash flows are surely already priced in since they are all basically utilities, and I do not see where the efficiency/synergy gains would be for another business to merge with them.

[+] safog|2 years ago|reply
Big tech would much rather commoditize the telcos and treat them as dumb pipes. You don't have to eat everyone upstream of you, as long as you capture most of the value and leave some bits to the commodity suppliers it's fine.

On the internet, most of the value (ads, shopping, socia etc.) is captured by tech cos. The pipes (despite the net neutrality reversal) continue to stay dumb pipes.

[+] Retric|2 years ago|reply
Telecom industry isn’t that attractive a target because they have high capital costs, actual competition, minimal moats, and are stuck on an endless upgrade treadmill 4g, 5g, …

AT&T is specifically a poor option because they are loaded up with so much debt.

[+] flakeoil|2 years ago|reply
I think you have your numbers wrong. Big tech is in some cases 10-20 times bigger than AT&T (market valuation). Big retail is just around double if you look at Walmart and everyone else much smaller (if you remove Amazon which I count as big tech).

I'm not quite sure it would be a benefit for the end users to have big tech also own the wireless networks.

[+] polski-g|2 years ago|reply
Amazon is not going to go out and build towers. They are going to license capacity from one of the three remaining infrastructure-providing carriers left (probably AT&T).

AT&T will never go away.

[+] op00to|2 years ago|reply
Telcos gobbled media.
[+] refulgentis|2 years ago|reply
Something is off:

- unlimited service

- for free, maybe $10/month

- vague "increase loyalty/stickiness" claims

- Amazon fired 30K people in last 6 months due to "economic conditions"

Is it 2008 or 2018?

Alternatively, when are we unionizing?

[+] AndrewKemendo|2 years ago|reply
I would just be happy if there was a way I could simply buy and download audiobooks

instead it’s some kafkaesque kabuki dance/rube Goldberg machine required to listen to an audiobook without getting into a long-term monopolistic audible subscription

[+] tyingq|2 years ago|reply
This would almost surely cannibalize big parts of existing business for whatever carrier signs on and just transfer the margins to Amazon. I'm pretty curious if Amazon really has the leverage to make that happen.
[+] tezza|2 years ago|reply
A bit close to the Kingsman (2014) plot…
[+] spywaregorilla|2 years ago|reply
the kingsmen movies are... such an uncommon niche. It's got aggressively american populist plots, but its written in a classic hollywood style that glosses over in a way that people don't seem to notice that it's so unusual. People remember the action scenes. They don't remember the main plot points about the elites and the government actively conspiring to kill off the poor as a popular class-wide mentality.

the advertisements do this too. They're very much just showing the cool action scenes. very strange.

[+] anaganisk|2 years ago|reply
Pretty sure Bezos doesn't want to be a saviour of anybody or thing. On the other hand if Musk introduced a phone.
[+] drtz|2 years ago|reply
I canceled Prime a while back, and I couldn't believe how full of dark patterns Amazon is when you're not a Prime member.

"Free" shipping can easily turn into $6-$12 if you're not careful at checkout.

[+] nunez|2 years ago|reply
This would be perfect for my work phone (i.e. a semi-disposable line), especially since my phone is connected to my home network through Tailscale (i.e. WireGuard) pretty much 24x7
[+] nazgulsenpai|2 years ago|reply
For a while, and maybe still now, you could buy Motorola phones on Amazon for a lower price, but with the lock-screen ads that the Kindle Fire range uses. No thank you!
[+] karaterobot|2 years ago|reply
I buy pretty much everything off Amazon, and even I would not pass all my cellphone data through them. That sounds like sheer stupidity.
[+] csense|2 years ago|reply
> Free Mobile Service to US Prime Members

How exactly is mobile service "free" if Prime is a product you have to pay for?

[+] stonogo|2 years ago|reply
I remember the last time Amazon offered free mobile service. It was quietly discontinued after a couple years.
[+] 1letterunixname|2 years ago|reply
I guess we have to ask ourselves: how much do we trust Amazon and what would goods and services would be being willing to purchase from them?

houses?

trains?

ships?

elevators?

airplanes?

pacemakers?

[+] version_five|2 years ago|reply
Is it byod or do you need to use an amazon Fire phone and everything that would entail?