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October 20, 2016

Amazon considers UK broadband launch to expand Prime services

Amazon could use internet services to boost its Prime offering.

By Alexander Sword

Amazon may launch a broadband offering in Europe as it seeks to expand its roster of services.

The internet retailer, which already offers services including music and video subscriptions, could package the internet offering with these other services, according to the Information.

Amazon

Amazon offers a range of services to Prime subscribers.

Full Amazon Prime subscribers get access to the above as well as free two-day shipping and cloud storage for £79 per year.

Amazon would offer the services through the infrastructure of other providers rather than invest in building its own network.

The service is expected to launch in Germany and the UK, which are easier markets to launch in than the US due to regulation.

It was recently reported that Amazon is expected to launch a music service with a full catalogue priced at $10 a month.

The company already offers a small catalogue of on-demand music to members of its Prime program.

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According to reports in the New York Times, the company negotiated on new licensing terms with record companies and music publishers for months to offer the new services.

It is unclear when Amazon would launch this service in Europe, or when such an offering might hit the US.

The UK market already has several broadband providers who do not have their own infrastructure, with BT compelled by Ofcom to offer rivals access to the Openreach network.

These include John Lewis, SSE and the Post Office.

broadband

Matt Hancock speaking at the Broadband World Forum.

This week, UK digital and culture minister Matt Hancock signalled a new phase in the Government’s broadband strategy as he announced plans to bring about ubiquitous 5G and fibre over the next ten years.

Hancock described three main tenets to the plan: completing the roll-out of current technologies such as 4G and superfast broadband, deploying deeper connectivity in areas of deep need and working to roll out more advanced technologies such as 5G and fibre.

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