sprint

Amazon is the biggest tech company, and it has spread its arms in almost everything. And now, the company is planning to expand into the telecom industry, too. According to a report by Reuters, Amazon is planning to acquire the prepaid cellphone wireless service Boost Mobile from its parent company Sprint.

The deal with Sprint not only will make Amazon fourth largest telecom services in the US but also may provide it with the access to the T-Mobile’s wireless network for a long period of time, as both Sprint and T-Mobile are under the process of a merger. The deal between T-mobile and Sprint will be a $26 billion merger if Sprint will be able to convince antitrust regulators for the merger.

But according to a recent report from Bloomberg, the regularity authority does not want that the number of wireless carriers be less than four, and the merger is actually, leading to that. So the two companies are working towards bringing an entirely new carrier, such that they might be giving away some of their spectrum to the new company and finalise the merger.

Boost is a subsidiary of Sprint, but is out of the merger contract, as Sprint has already decided to sell the company. So there are no chances that after the deal, T-Mobile can own it. In fact, the company that will own Boost will have access to the Sprint’s wireless network, but not T-Mobile’s. But according to the report from Reuters, acquiring Boost will provide Amazon with access to both the company’s combined network for a span of six years.

Since the news has been making rounds, there is a questing hitting everyone’s mind, “Why Amazon would want to enter the telecom business?” It is quite simple. The company has been expanding into almost every field. It is the biggest eCommerce platform and has got its cloud computing arm. The company has got its retail stores, streaming service, and now it is also off to start its own delivery service. So why not expand into telecom?