Amazon In Prime Position To Launch MVNO Services In The UK

New research suggests that US web giant Amazon could capture a quarter of the UK’s mobile market, if it decided to launch its own brand of mobile network services in 2019.

Research conducted by Decision Technology (Dectech) showed that 25 per cent of UK consumers would opt for Amazon as their mobile network operator of choice, if the company offered mobile telecoms services bundled with its Prime offering. Even without the added incentive of free Prime membership, the research found that Amazon could expect to attract 12 percent of the mobile market on brand power alone, were it to launch mobile services in the UK

“These striking results show that Amazon could well become an even bigger giant should it enter the mobile sector offering Amazon Prime as a free perk. In a fiercely competitive market, it also has potential as a standalone network operator,” said Henry Stott, director of Decision Technology.

“Today, mobile operators are competing on multiple fronts – from handsets to data and perks. O2 Priority, and Orange Wednesdays before it, has proven the power of a strong perk. Should Amazon enter the mobile market with a free Amazon Prime membership offer, it could be the next iconic brand perk.”

Dectech’s new report, entitled ‘Primed for domination: The threat of Amazon as a challenger brand’, suggests that Amazon could add as much as £3 billion to its annual revenues, by entering the UK mobile market with a free Prime offering.― Total Telecom