Amazon may provide internet service for Prime subscribers in Europe

Amazon may offer home internet service in Europe soon. The company would most likely bundle internet and video services for its existing Prime customers taking on cable TV and internet providers who provide a similar deal.

A report by the Information states that sources have claimed the e-commerce giant is looking to be an internet service provider in Europe but is still figuring out the modalities. The company will most likely have to offer internet services over the networks of existing providers since it doesn't want to build its own network which would require purchasing wholesale access.

The scheme is aimed at giving its video streaming service, Amazon Prime Video, a much-needed push as most users are currently opting for bundled plans by their cable operators that provide both TV channel offerings as well as internet. The service will only be available to Prime customers who will have it included in the $99 a year subscription they already pay for.

The report goes on to state that the US-based company is less likely to launch a similar scheme in its own country as US telecom laws don't guarantee wholesale access to existing networks.

Amazon has been pushing for raising its Prime subscription user base by offering an array of services like discounted prices on the e-commerce site, food delivery in select cities, music streaming as well as video streaming through Amazon Prime Video. Prime is an important part of Amazon's overall retail business as its members are estimated to spend more and shop more frequently creating a loyal customer base for the company.