Amazon Could Become an ISP in Europe

Amazon is making moves to become an internet service provider within Europe, bundling online access in with its Amazon Prime membership package, according to a new report from The Information. While the company would have a hard time squeezing itself into the US market, many European broadband network owners are required to offer wholesale access to resellers.

“Amazon.com is considering offering internet service directly to consumers in Europe, said a person briefed on the discussion,” Amir Efrati and Martin Peers of The Information write [paywalled]. “That would allow Amazon to bundle internet access with its Prime streaming video offering, the person said, making it more competitive with cable operators which already offer a similar broadband-video package.”

Should Amazon consider becoming an ISP within the US, though, it would have to lay its own broadband or fibre cable – much the same way as Google Fiber has been doing – since providers operate their own lines and are under no obligation to open their wired networks to third-party providers.

“In parts of Europe, such as Britain, broadband providers like British Telecom are required to offer wholesale access to their network to rivals,” Efrati and Peers added. “A US offering would be tougher to pull off as US regulators don’t require cable operators to open up their networks to rivals.”