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I think it is possible, especially if they could partner with a telco to provide 'discount' calling/data plans, or more consumer-friendly terms for their phones. There are many people (myself included) who would get a smartphone if the plans were more flexible and fair.
I would point out that Amazon is in the wireless business (in the US), but right now I assume they derive income solely from sales commissions. Why are they doing this, if not to test the waters?
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