Amazon is a multimedia company that is involved in a lot of industries, from manufacturing all sorts of devices to being a TV network. However, there are reports that Amazon also wants to become an internet service provider. Reportedly, the company’s new endeavor is going to start in Europe.
Creating a new internet service provider company which distributes broadband access directly to users, is easier in Europe than in the US, thanks to the more relaxed regulations in some countries. One example is the UK, where current established internet service providers (ISP) do not restrict the access to their cable network to competitors, unlike in the United States. A similar situation can be found in Germany, where the main ISP, the Deutsche Telekom, makes its network available to other providers.
The lax state of regulations in these countries, allow new internet service companies to join the competition without the need to build their own infrastructure. The cable network is the most difficult, time-consuming and expensive part aspect in creating a new ISP from zero. Amazon can take advantage of the fact they’re allowed to just start selling broadband access directly to consumers using the already built optic cable networks.
According to one report by The Information, Amazon plan to become a European ISP also doubles as a way for the company to tap a new market for their Amazon Prime $99 annual subscription service. Thanks to the lack of regulations in Germany and the UK, countries where Amazon has already established a strong online shopping presence, are the ideal ground for the company’s new endeavor.
The report claims that Amazon will combine the internet service, video-streaming service, fast shipping and other features of their Prime program into one package. Their offering will be similar to the cable TV, phone, and internet package other ISP already offer, but with more perks and features.
Despite all the lucrative opportunities for Amazon to expand in Europe, the company has not released any comment regarding the new report. Nonetheless, the wide range of Amazon Prime services and benefits can lead to a fierce competition between European ISPs. Some may even object to allowing Amazon to use their cable network.
What do you think about Amazon expanding as an ISP in Europe? Would you subscribe?
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