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The Street
The Street
Tony Owusu

Amazon's Next Major Move May Result in Your Cell Phone Service Becoming Free

Amazon (AMZN) is constantly thinking of new ways to entice new people to sign up for Prime, and a new report suggests the company is pulling out all the stops for its next promotion.

Amazon is reportedly in talks with wireless carriers Verizon Communications (VZ), T-Mobile U.S. (TMUS) and Dish Network (DISH) to offer free mobile service to U.S. Prime members, Bloomberg reported. 

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The deal could include a $10 monthly plan, and possibly free unlimited plans, according to sources. 

Amazon Prime currently costs $14.99 per month, or $139 for the year, and a phone plan that is included would greatly reduce the wireless bills for countless Americans, who on average pay about $166 per month, according to some estimates. 

Prime is the crown jewel of Amazon's package delivery empire, with the company generating more than $25 billion annually from subscriptions alone. 

On top of that -- thanks in part to same day shipping and other Prime perks -- the average Prime subscriber spends about $1,400 per year on Amazon. 

According to some estimates, Amazon has 148.6 million Prime subscribers in the U.S., a nearly 50% jump from the 99.7 million it had in 2017 and a lot of that growth has been fueled by the perks Amazon keeps piling onto members who plop down their monthly, or yearly, subscription fees. 

But it hasn't only been perks and roses for Prime subscribers. 

The company last year raised Amazon Prime prices nearly 15% to $139 per month from $119. In January, the retailer said shoppers will now need to spend at least $135 on groceries to receive free home delivery within a two-hour window. The previous minimum order was $35.

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