Amazon.com is keen on purchasing prepaid cellphone wireless service administration Boost Mobile from US wireless service T-Mobile US Inc and Sprint, reports Reuters.
Amazon is thinking about purchasing Boost mainlythe arrangement would enable it to utilize T-Mobile’s wireless network for in any event six years, one of the sources said. Amazon would also be keen on any wireless range that could be divested, the source said.
Amazon declined to remark. T-Mobile and Sprint did not promptly react to requests for comment.
It was not quickly clear why the biggest U.S. online retailer would need the wireless network and spectrum.
But Amazon, which began its business by selling books, has a long history of exploring new ventures, such as making original TV shows for Amazon Prime members. It is now one of the Big Four technology companies along with Alphabet Inc , Apple Inc and Facebook Inc, and is a leading cloud services provider.
T-Mobile and Sprint have offered concessions, including selling Boost, to reduce their market share in the prepaid wireless business and gain regulatory approval for their planned $26 billion merger.
The U.S. Justice Department would need to scrutinize the buyer of a divested asset to ensure it will stay viable and preserve competition.
The carriers are also considering divesting wireless spectrum, or airwaves that carry data, in order to push the merger through.
The merger, if approved, would leave the United States with three wireless carriers instead of four. Some consumer advocates have raised concerns that the merger could raise prices for wireless users and have called for an additional competitor.
The sale of Boost could fetch up to $3 billion, potential bidders previously told Reuters.