Amazon has reportedly expressed interest in buying Boost Mobile from US carriers T-mobile and Sprint as the ecommerce giant looks to expand its current offerings.
According to Reuters, two sources familiar with the matter revealed that Amazon is considering buying the prepaid wireless service as the deal would grant it access to use new T-Mobile’s wireless network for at least six years.
New T-Mobile is the name T-Mobile and Sprint are currently using to refer to the new entity that will result from the potential merger of the two US telecoms.
Additionally, Amazon is also interested in purchasing any wireless spectrum that could be made available as a result of the merger.
The question as to why Amazon would be interested in purchasing the wireless network and spectrum remains unclear but the company has been known to explore new ventures. Providing wireless service in addition to its current offerings could help it better compete against Google and other tech giants.
As part of their planned $26bn merger, T-Mobile and Sprint have already pledged to sell Boost to reduce their market share in the prepaid wireless business as they seek regulatory approval for the deal. The two carriers are also considering selling off wireless spectrum to help the merger get approved.
If approved, the merger would leave the US with three wireless carriers instead of four and this has raised concerns among consumer advocates that the deal could lead to an increase in wireless prices.
The sale of Boost Mobile could earn T-Mobile and Sprint up to $3bn according to potential bidders.