Could the Amazon Kindle Phone be paired with an MVNO?

Rumors about the Kindle Phone continue to swirl, and some tech experts are debating whether or not Amazon should enter the market at all. Critics claim that the smartphone market is way more competitive than the tablet market, and that tablet users are more likely to purchase media content from the Amazon store than any smartphone users. Since Amazon’s store is a major reason behind the Kindle’s success, it could be risky going into the smartphone market.

However, supporters of the Kindle Phone say that similar arguments were made before Apple launched into the smartphone market with its iPhone, and we all know how that turned out. They also say that consumers – and Kindle fans – would appreciate a fresh face in the mobile space.

However, one reason why people are supporting the potential Kindle Phone is that Kindle could partner with – or even become – a Mobile Virtual Network Operator (MVNO).

What does that mean? Basically, instead of owning the wireless network infrastructure needed to control mobile data, Amazon would effectively buy access to that infrastructure at wholesale rates and then choose its own retail prices. In other words, Amazon would be able to create attractive plans that catered to Kindle users as opposed to being limited to restrictive AT&T and Verizon plans in the US market.

Some industry experts are even suggesting that Amazon packages the Kindle Phone with a service plan. For example, the Kindle Phone might be free with an 18-month or 3-year contract.

This idea might seem like it comes out of nowhere, but it’s not as far-fetched as it may seem. Amazon already is an MVNO in Japan, and the company could seriously change the US market if it did something similar stateside.

It’s unknown if Amazon would be brave enough to make that move. It’s a big step that consumers might love or hate. But it has the potential to completely flip the mobile space on its head. Stay tuned to our blog to learn more about the Kindle Phone as more details are released!

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