It looks like Amazon is interested in becoming a full-fledged wireless carrier.
What you need to know
- Amazon is said to be interested in buying Boost Mobile from Sprint.
- T-Mobile and Sprint have agreed to sell Boost as part of their merger conditions.
- Amazon could also pick up spectrum from T-Mobile and Sprint.
T-Mobile and Sprint have announced their intent to sell Boost Mobile should their $26.5 billion merger go through, and it looks like there’s an unlikely candidate to pick up the MVNO: Amazon. According to Reuters, Amazon is interested in buying the MVNO from T-Mobile and Sprint as it would allow the retailer to use T-Mobile’s wireless network for at least six years.
What makes this rather puzzling is that Boost Mobile is Sprint’s MVNO, and it doesn’t use any of T-Mobile’s wireless spectrum. That said, the U.S. Justice Department is keen on maintaining the status quo with four national carriers, and that could likely involve both carriers divesting some spectrum.
In that scenario, Amazon could pick up the spectrum from T-Mobile and Sprint, and in effect become the fourth national carrier. But that doesn’t answer another question: why Amazon would want to become a wireless carrier in the first place. Amazon made its foray into retail with the acquisition of Whole Foods back in 2017, but I’m not sure how becoming a full-fledged carrier ties into the company’s strategy.
What are your thoughts on Amazon becoming a carrier?