Amazon to potentially offer broadband service

The online retail giant is considering the idea of becoming an internet service provider in Europe.

Online retail giant and streaming service Amazon are reportedly considering the idea of becoming an internet service provider (ISP) in Europe, according to a report published by technology news website The Information.

Becoming an ISP would allow Amazon to offer a combined package of broadband and Prime, their popular annual membership programme which for a fee of £5.99 a month or £79 for the entire year offers users free access to Amazon’s own video-streaming service, unlimited one-day delivery on all Amazon orders, unlimited cloud photo storage and much, much more. So allowing them to compete with big names like Sky and Virgin Media.

According to the report, Amazon are undecided on whether to construct their own broadband network or purchase wholesale access to an existing one. Whilst the former is obviously incredibly expensive and time consuming, the latter means a probable restriction to Europe.

The U.S, where Amazon is headquartered, has different laws regarding the opening up of a broadband network. Unlike here in the UK for example where Ofcom have instructed BT to open up the Openreach network to competitors, US telecommunication companies are under no such obligation to do the same.

Amazon have yet to publicly release a statement on the plans, but there is sure to be more information coming in the next few months.

Source: Ars Technica

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