According to Bloomberg, Amazon may launch a mobile phone service for its Prime subscribers in US that could offer free or low-cost plans. This could challenge the wireless industry by forcing them to lower their prices.

Sources close to the matter told media outlets that Amazon has been talking with major mobile carriers such as AT&T, T-Mobile, Verizon, and Dish.

These talks are meant to negotiate low wholesale prices that would let Amazon offer wireless plans to Prime members for just $10 per month. Amazon would have the flexibility to set its own pricing as a reseller or MVNO.

The news of Amazon potentially entering the mobile phone service market caused Verizon, T-Mobile, and AT&T to lose between 5% and 7% in their share prices in premarket trading. Meanwhile, Dish, with its smaller market size, gained 9%.