The Kindle's main competition has been Sony's Reader -- a handheld that has a similar screen meant to imitate the look of paper. But unlike the Amazon handheld, the Reader lacks wireless access so books have to be loaded by connecting it to a computer.
AT&T, the second largest wireless carrier after Verizon Wireless, has also been talking to e-reader manufacturers.
Since AT&T's GSM network is more similar to ones used overseas, it could support international e-book readers. The Kindle can download books only in the U.S.
Just like Verizon Wireless, AT&T is looking for ways to expand the uses of its wireless network beyond mobile phones to generate additional revenue.
Verizon and AT&T have also announced plans to sell netbooks -- smaller scaled-down versions of laptops that typically sell for less than $500.