Talk of Amazon (AMZN) mobile service scares wireless telecom investors may be planning to offer mobile phone service to its Prime subscribers. The Wall Street Journal reported Amazon has been in talks with wireless carriers about providing low-cost or free mobile service as a perk for its loyal customers.

This news sent shockwaves through the telecom industry. Shares of AT&T (T), Verizon (VZ) and T-Mobile (TMUS) all dropped by 4% or more in premarket trading on Friday.

I don’t know why this would scare investors in telecom companies. Amazon doesn’t have a cellular network. It doesn’t hold the rights to any cellular spectrum that I know of. In order to launch a cellular network they would have to lease network bandwidth from AT&T, Verizon, or T-Mobile. This would be a boon to these companies and good for investors. They could try a wi-fi network too but there is too much infrastructure to build to make that work. I don’t get it.