Report: Amazon eyes purchase of prepaid wireless provider
Amazon is reportedly considering entering yet another new business with a purchase of.
According to Reuters, Amazon is interested in acquiring Boost Mobile, a subsidiary of wireless communications giant Sprint that provides prepaid wireless cell phone services. Sprint has offered to sell Boost Mobile to reduce its wireless market share in preparation for a planned $2.6 billion with fellow major wireless provider T-Mobile.
While Boost Mobile operates more than 8,000 brick-and-mortar stores across the U.S. as well as an e-commerce site, Amazon is reportedly most interested in obtaining wholesale access to T-Mobile’s wireless network and also in purchasing wireless spectrum that might be divested as a result of the Sprint-T-Mobile merger.
Amazon, T-Mobile and Sprint have not yet offered public commentary. Sources did not tell Reuters why Amazon is considering acquiring Boost Mobile. The U.S. Justice Department would have to approve Amazon as a buyer of Boost Mobile and any divested spectrum.
CNBC reports that analysts from Moffett Nathanson have publicly stated Amazon should not purchase Boost Mobile. In a note titled, “Sprint and T-Mobile: Welcome to Crazy Town,” analysts said the acquisition would be “economically insane” and that wireless network investments historically not provide a meaningful return on invested capital. However, the note did speculate Amazon may want to obtain wireless bandwidth for piloting drones and other automated delivery vehicles.
According to Reuters, Amazon is interested in acquiring Boost Mobile, a subsidiary of wireless communications giant Sprint that provides prepaid wireless cell phone services. Sprint has offered to sell Boost Mobile to reduce its wireless market share in preparation for a planned $2.6 billion with fellow major wireless provider T-Mobile.
While Boost Mobile operates more than 8,000 brick-and-mortar stores across the U.S. as well as an e-commerce site, Amazon is reportedly most interested in obtaining wholesale access to T-Mobile’s wireless network and also in purchasing wireless spectrum that might be divested as a result of the Sprint-T-Mobile merger.
Amazon, T-Mobile and Sprint have not yet offered public commentary. Sources did not tell Reuters why Amazon is considering acquiring Boost Mobile. The U.S. Justice Department would have to approve Amazon as a buyer of Boost Mobile and any divested spectrum.
CNBC reports that analysts from Moffett Nathanson have publicly stated Amazon should not purchase Boost Mobile. In a note titled, “Sprint and T-Mobile: Welcome to Crazy Town,” analysts said the acquisition would be “economically insane” and that wireless network investments historically not provide a meaningful return on invested capital. However, the note did speculate Amazon may want to obtain wireless bandwidth for piloting drones and other automated delivery vehicles.