Amazon Mobile

Amazon.com is reportedly in talks with wireless carriers, including Verizon Communications, T-Mobile, and Dish Network, to offer low-cost or potentially free mobile phone services to its Prime subscribers.

The e-commerce giant aims to negotiate the lowest wholesale prices to provide wireless plans for as low as $10 per month or even for free, enhancing customer loyalty among its high-spending Prime members.

If successful, the move could benefit struggling satellite-TV company Dish as it transitions into a national wireless carrier, while posing a potential threat to the big three US national carriers, as subscribers could switch to the cheaper Amazon option.Shares in Dish Network ripped upward by 16%.

Echoing how grocery stocks were creamed when Amazon bought Whole Foods, holders of telecom stocks didn't like the sound of Amazon encroaching on their territory. AT&T slipped 3.8%, Verizon Communications fell 3.2% and T-Mobile US slid 5.6%.

Overall, the talks between Amazon and wireless carriers highlight the potential for disruptive changes in the industry, but the final outcome and launch of the Prime wireless service still needs to be determined.