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Amazon debating buying mobile provider

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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 (opens in new tab), 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.

Boost Mobile

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.

Via Reuters (opens in new tab)

Anthony Spadafora
Anthony Spadafora

After working with the TechRadar Pro team for the last several years, Anthony is now the security and networking editor at Tom’s Guide where he covers everything from data breaches and ransomware gangs to the best way to cover your whole home or business with Wi-Fi. When not writing, you can find him tinkering with PCs and game consoles, managing cables and upgrading his smart home.