Tmobile MVNO: 3,000 Minutes + 3,000 Texts + 3,000 MB of 4G Data for $39 a month

[BookReader2]

For comparision, Solavei (T-mobile MVNO) is offering unlimited minutes, unlimited texts and 4GB of 4G data for $49. T-Mobile has a $30 prepaid plan for unlimited text, 5GB of 4G data and 100 minutes.

Could a company like Amazon negotiate with T-Mobile in which both companies benefit? T-Mobile makes money. Amazon makes money in which the plan looks like this:

Amazon Wireless: 3,000 Minutes + 3,000 Texts + 3,000 MB of 4G Data for $39 a month.

Amazon is developing its smartphones. It will either sell them to carriers like Samsung, Apple, HTC, LG etc..or it will go the MVNO prepaid route. If it's MVNO, then it will most likely be T-Mobile or Sprint.




Hypothetical: Amazon Kindle Blaze 4G LTE smartphone retail basically at cost at around $249. It advertised the "3,000 Minutes + 3,000 Texts + 3,000 MB of 4G Data for $39 a month" on its homepage. It will gain millions of users.

 

[DNicolasL]

Is Amazon Wireless hypothetical or is it real?

 

[chunkcohen]

What he's saying his hypothetical, if Amazon were to become an MVNO (which they're currently not). They simply sell phones (sometimes with special promos) but the service plans still come from the major carriers.

I honestly don't see OP's proposed scenario as realistic, though. I would say the majority of smartphone users on average, don't exceed 3000 minutes and 3000 texts in a given month on plans with unlimited talk/text. Most carriers and MVNOs would rather keep the "average" smartphone people paying a little more to stay on unlimited talk/text plans, I would think.

 

[BookReader2]

What he's saying his hypothetical, if Amazon were to become an MVNO (which they're currently not). They simply sell phones (sometimes with special promos) but the service plans still come from the major carriers.

I honestly don't see OP's proposed scenario as realistic, though. I would say the majority of smartphone users on average, don't exceed 3000 minutes and 3000 texts in a given month on plans with unlimited talk/text. Most carriers and MVNOs would rather keep the "average" smartphone people paying a little more to stay on unlimited talk/text plans, I would think.

You're right. The 3000 minutes, 3000 text, 3000MB is just a gimmick.

More realisticly, Amazon as a T-Mobile MVNO might offer something similar to Straight Talk but even cheaper. Amazon can thrive on 2-3% margin. Tracfone probably have a much higher margin than 2-3% for Straight Talk. In addition, Amazon will benefit from selling apps, music, movies, books etc...on its smartphone. Tracfone doesn't have access to this revenue since their smartphone relies on GooglePlay store. See Amazon tablet strategy. Its smartphone strategy will mirror this.

I could see Amazon offering something like this on its smartphone that it is making:

$43 a month for unlimited talk, text and 2.5GB of data.
on a device that is on par with the Galaxy Nexus and retail for $249.

to cut cost further, it will only sell this device and service straight from Amazon. You buy it on Amazon, it will send you the phone with a number all ready to go. All you have to do is turn it on and use. With something over 140 millions American shop on Amazon, it will sell very well in my opinion.

Of course, Amazon could use a different strategy and not be a MVNO at all. But in order to be disruptive, this might be a good option. Sprint or T-Mobile would love to have Amazon as its MVNO. Maybe even AT&T or Verizon too.