(Reuters) – On Friday, major U.S. cellular carriers said they were not in negotiations with Amazon.com Inc (AMZN.O) about offering low-cost cellphone services to Prime members.

cellphone stocks slumped Friday after Bloomberg News reported that Amazon was negotiating the lowest wholesale pricing feasible and might provide cellphone plans for $10 a month or less to Prime subscribers via partnerships, including a prospective tie-up with Dish Network (DISH.O).

“We are always exploring adding even more benefits for Prime members, but we don’t have plans to add wireless at this time,” an Amazon spokeswoman said in response to a Reuters question.

AT&T, Verizon, and T-Mobile all denied any discussions. Reuters’ efforts for comment were not returned.

“AT&T is not in discussions with Amazon to resell wireless services,” according to a company spokeswoman. According to a Verizon representative, the firm “is not in talks with Amazon about reselling (Verizon’s) wireless network.” Our organisation is continuously on the lookout for new and exciting prospects, but we have nothing to share at the moment.”

T-Mobile “stated that we are not in discussions about including our wireless service in Prime service, and Amazon has stated that they have no plans to add wireless service.”

According to some experts, the online retail giant’s arrival might cause big changes in the telecom market since it could offer lower plans in a nation with some of the world’s highest cellular costs.

“Amazon could certainly put a lot of its weight behind it and undercut competitors,” said Christopher Ali, a Penn State University professor of telecommunications. “It’s possible that cell phone prices will fall, which would be fantastic.”

Amazon’s stock increased 1.2%, while Verizon, AT&T, and T-Mobile all plunged more than 3%.

According to Brandon Nispel of KeyBanc Capital Markets, Dish Network, a relatively recent entry in wireless, might be Amazon’s most probable partner.

He said that a partnership would provide Dish with cash to help expand out its network, but the other carriers were unlikely to collaborate with Amazon because “they obviously don’t want to change the status quo of the industry.”

Dish Network’s stock increased 17%. They also rose in May after a Wall Street Journal story that Dish was in discussions with Amazon to sell its cellular services.

A partnership might bring additional consumers to Amazon’s Prime programme at a time when growth in major areas such as the United States has slowed.

Revenue growth at the corporation plummeted to its worst in at least 20 years in 2022, as companies and consumers cut down on spending in a difficult economy.

“Several possible benefits may accrue from such a move, including improving Prime member retention rates, allowing it to slightly increase annual subscription costs, and providing Amazon with a direct channel to the lucrative multi-billion dollar market of selling and financing mobile phones,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.

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