Apple Considering Participating in FCC Wireless Auction?

MacRumors · Sep 10, 2007, 03:52 AM

Businessweek reports that Apple has studied the implications of joining the FCC Wireless auction to be held on January 16th.

Quote:

The winners will get rights to use the spectrum that analog TV broadcasters are handing back to the government in 2009, given their mandated move to digital television.
....
Signals at the 700Mhz spectrum, for example, could provide far faster Internet access than today's cellular or even Wi-Fi networks, and the signals can easily pass through buildings and work glitch-free, even in lousy weather.

According to their sources, however, Apple is currently "leaning against participating" in the auction. With $14 billion in cash reserves, while Apple could easily afford participating in the auction, the logistics of running a "low-margin .... massive-scale network" could prove to be detrimental to Apple. This negative impact on Apple's margins and focus are seen as major reasons for Apple's reluctance to participate.

Winning its own piece of the spectrum, however, would provide Apple with the ability to offer its own wireless network service to devices such as the iPhone.

Quote:

"Apple is the most anti-carrier company there is," says the former Apple executive. "They're probably already frustrated with AT&T. If they put a few billion behind this, they could build a kick-ass network."

The article goes on to the possible implications of such a purchase, but feels it is quite unlikely.

Google has been expected to make a bid on the wireless auction.

Article Link

Nickz · Sep 10, 2007, 03:55 AM

Woah!

What's next for Apple?

If Apple actually goes in and build up their own network, I guess we'll all have to break our contracts (again for the same of us) and move to their... ah.. let's see... iNetwork? iWireless?

- Nickz

thevofl · Sep 10, 2007, 03:58 AM

I am intrigued by this. It seems to be more of a bite than Apple could chew.

NewSc2 · Sep 10, 2007, 03:59 AM

Although it would cost Apple a poopload to bid on the network and set it up... I'd really like to see another company (other than AT&T/T-Mobile/Verizon/Sprint) set something up. Apple + AT&T reeks of Apple + Motorola, where a great idea is hindered by a less-than-ideal network (edge? iChat?). I really hope Apple or Google or another company can make a dent in the big 4.

Schroedinger · Sep 10, 2007, 04:02 AM

How about Google buys the spectrum, provides free access to all with equipment made and sold by Apple???

The gPhone is the iPhone!!!!

Bonte · Sep 10, 2007, 04:04 AM

Let Google buy it, they can make it free with advertising or something. Not a good market for Apple to be in, better work together on this.

Zadillo · Sep 10, 2007, 04:07 AM

Yeah, I'd really agree - let Google invest the billions in building this network up, and piggyback off of that.

Project · Sep 10, 2007, 04:08 AM

I dont think Google or Apple will end up seriously bidding for the spectrum. Its just too expensive. Google may meet the reserve price, but I cant see them spending the 2 or 3 times that amount that will eventually be needed.

Though maybe they go 50/50......

Chaszmyr · Sep 10, 2007, 04:11 AM

I can only imagine Apple bidding if they'd be able to license it to partners of their choice for use with their own products. I think it would be a bad decision for Apple to attempt to build an entire network of their own.

GavinTing · Sep 10, 2007, 04:11 AM

Quote:

Originally Posted by Bonte

Let Google buy it, they can make it free with advertising or something. Not a good market for Apple to be in, better work together on this.

That would just be amazing. But imagine the lawsuits from disgruntled internet companies..

iMikeT · Sep 10, 2007, 04:14 AM

Any guesses at what would happen if one of the big four cellular providers (or all of them collectively) acquires the band?

LoganT · Sep 10, 2007, 04:15 AM

Quote:

Originally Posted by Schroedinger

How about Google buys the spectrum, provides free access to all with equipment made and sold by Apple???

The gPhone is the iPhone!!!!

That's exactly what I think.

I haven't investigated this but does the 700mhz wireless spectrum basically translate to free wifi everywhere?

Zadillo · Sep 10, 2007, 04:16 AM

Quote:

Originally Posted by Project

I dont think Google or Apple will end up seriously bidding for the spectrum. Its just too expensive. Google may meet the reserve price, but I cant see them spending the 2 or 3 times that amount that will eventually be needed.

Though maybe they go 50/50......

Honestly I can't see why Google wouldn't; they are flush with cash, and this spectrum is exactly the kind of thing Google would want to own so they can offer services for it (and their whole model seems to now be built around offering free services in order to sell advertising).

Project · Sep 10, 2007, 04:21 AM

Quote:

Originally Posted by Zadillo

Honestly I can't see why Google wouldn't; they are flush with cash, and this spectrum is exactly the kind of thing Google would want to own so they can offer services for it (and their whole model seems to now be built around offering free services in order to sell advertising).

No they arent. Apple have slightly more cash reserves than Google.

fastbite · Sep 10, 2007, 04:27 AM

I'm of the school of though, as others here, that together with google maybe. Otherwise I think it feels too risky.

Analog Kid · Sep 10, 2007, 04:29 AM

Not likely. I have no doubt they discussed it, but I doubt the conversation went far. This is too far outside Apple's competence. This would really drag the company down, even if they spun off a subsidiary. I could picture them making a sizable minority investment in a third party that was bidding-- maybe a Google spinoff or something.

In the end, I think this is going to Google or Sprint. Google really wants to step clear of the existing Internet backbone because of the whole network neutrality argument. Sprint wants a nice chunk of spectrum to host their WiMax rollout.

drater · Sep 10, 2007, 04:40 AM

I think that Apple should invest in this somehow. The only problem is it would be hard to compete with google if they decide to go after it, only because I think if google REALLY wants it, they will go as far as they have to to get it.

But it would be a nice thought, and iPhone + no ATT = grand life

Analog Kid · Sep 10, 2007, 04:43 AM

Quote:

Originally Posted by drater

But it would be a nice thought, and iPhone + no ATT = grand life

Doesn't AT&T have a 5 year exclusive on the iPhone? The grand life might not happen before 2012...

iMacZealot · Sep 10, 2007, 04:49 AM

Quote:

Originally Posted by Analog Kid

Doesn't AT&T have a 5 year exclusive on the iPhone? The grand life might not happen before 2012...

I thought that was GSM...

Analog Kid · Sep 10, 2007, 04:54 AM

Quote:

Originally Posted by iMacZealot

I thought that was GSM...

Not sure what you mean... You mean Apple can only offer a GSM version of the iPhone through AT&T? Seemed to me the deal restricted them from partnering with Verizon et. al.

drater · Sep 10, 2007, 05:11 AM

Quote:

Originally Posted by Analog Kid

Doesn't AT&T have a 5 year exclusive on the iPhone? The grand life might not happen before 2012...

HEY!

why can't you just let me dream?! is that so much to ask?!

.:R2theT · Sep 10, 2007, 05:39 AM

Personally, I think we would see Apple start an iTunes recording company(actually signing artists) before we see them become a wireless provider. Heck, they may do it all. Apple seems to have no problem reinventing and refreshing itself into new markets as it pleases. They do seem to have an awful lot of irons in the fire, though.

iMacZealot · Sep 10, 2007, 05:46 AM

Quote:

Originally Posted by Analog Kid

Not sure what you mean... You mean Apple can only offer a GSM version of the iPhone through AT&T? Seemed to me the deal restricted them from partnering with Verizon et. al.

No, I thought it was a 2-year exclusive on at&t Mobility, and a 5-year exclusive on GSM.

Though that may be horribly incorrect.

mrthieme · Sep 10, 2007, 05:51 AM

This whole topic has been very exciting, the idea of a good wireless connection everywhere we go along with a way for many to break away from the monopoly that providers have in many areas. A network like this, if it were fast and dependable could replace my cell carrier, cable provider for internet and television, and maybe even the phone landline to my house. A collaboration with Google and Apple would be interesting to say the least. I see a chance to stick it to many markets here, and I would gladly pay to help the cause.

hob · Sep 10, 2007, 05:51 AM

As mentioned by some already, I think Apple would be wise to invest in a Google project that was going ahead.

Presumably this would mean that Apple gets first dibs on anything Google was offering.

I wonder if this will happen in the UK in 2012 - when Analogue TV is shut off totally.

Sep 10, 2007, 03:58 AM	#3
thevofl macrumors member Join Date: Aug 2006	What now? I am intrigued by this. It seems to be more of a bite than Apple could chew.

Sep 10, 2007, 03:59 AM	#4
NewSc2 macrumors 6502a Join Date: Jun 2005 Location: Orange County, CA	Although it would cost Apple a poopload to bid on the network and set it up... I'd really like to see another company (other than AT&T/T-Mobile/Verizon/Sprint) set something up. Apple + AT&T reeks of Apple + Motorola, where a great idea is hindered by a less-than-ideal network (edge? iChat?). I really hope Apple or Google or another company can make a dent in the big 4. __________________ Mac Pro + 30" ACD, 15" MBP, iPhone 3GS Logic & Ableton user Canon 40D + 17-55 f/2.8 IS

Sep 10, 2007, 04:02 AM	#5
Schroedinger macrumors regular Join Date: Feb 2004 Location: Baltimore, MD	How about Google buys the spectrum, provides free access to all with equipment made and sold by Apple??? The gPhone is the iPhone!!!! __________________ Mac Pro, eMac, HP mini iPhone, iPod Classic --> 1647 LOLCATS and counting

Sep 10, 2007, 04:27 AM	#15
fastbite macrumors 6502a Join Date: Jul 2007 Location: London	I'm of the school of though, as others here, that together with google maybe. Otherwise I think it feels too risky. __________________ If the movie is a turkey, stuff it! http://www.turkeyornot.com/

Sep 10, 2007, 04:29 AM	#16
Analog Kid macrumors 68000 Join Date: Mar 2003	Not likely. I have no doubt they discussed it, but I doubt the conversation went far. This is too far outside Apple's competence. This would really drag the company down, even if they spun off a subsidiary. I could picture them making a sizable minority investment in a third party that was bidding-- maybe a Google spinoff or something. In the end, I think this is going to Google or Sprint. Google really wants to step clear of the existing Internet backbone because of the whole network neutrality argument. Sprint wants a nice chunk of spectrum to host their WiMax rollout. __________________ "Quick to judge, quick to anger, slow to understand... Ignorance and Prejudice and Fear walk hand-in-hand." --Peart

Sep 10, 2007, 03:55 AM	#2
Nickz macrumors newbie Join Date: Jul 2007	Woah! What's next for Apple? If Apple actually goes in and build up their own network, I guess we'll all have to break our contracts (again for the same of us) and move to their... ah.. let's see... iNetwork? iWireless? - Nickz

Sep 10, 2007, 04:04 AM	#6
Bonte macrumors 6502a Join Date: Jul 2002 Location: Bruges, Belgium	Let Google buy it, they can make it free with advertising or something. Not a good market for Apple to be in, better work together on this.

Sep 10, 2007, 04:07 AM	#7
Zadillo macrumors 65816 Join Date: Jan 2005	Yeah, I'd really agree - let Google invest the billions in building this network up, and piggyback off of that.

Sep 10, 2007, 04:08 AM	#8
Project macrumors 68020 Join Date: Aug 2005	I dont think Google or Apple will end up seriously bidding for the spectrum. Its just too expensive. Google may meet the reserve price, but I cant see them spending the 2 or 3 times that amount that will eventually be needed. Though maybe they go 50/50......

Sep 10, 2007, 04:11 AM	#9
Chaszmyr macrumors Demi-God Join Date: Aug 2002 Location: Boulder, CO	I can only imagine Apple bidding if they'd be able to license it to partners of their choice for use with their own products. I think it would be a bad decision for Apple to attempt to build an entire network of their own.

Sep 10, 2007, 04:14 AM	#11
iMikeT macrumors 6502 Join Date: Jul 2006 Location: California	Any guesses at what would happen if one of the big four cellular providers (or all of them collectively) acquires the band?

Sep 10, 2007, 04:40 AM	#17
drater macrumors 6502a Join Date: Oct 2005 Location: Boston, MA	I think that Apple should invest in this somehow. The only problem is it would be hard to compete with google if they decide to go after it, only because I think if google REALLY wants it, they will go as far as they have to to get it. But it would be a nice thought, and iPhone + no ATT = grand life __________________ "You know, Dude, I myself dabbled in pacifism once. Not in 'Nam of course."---Walter Sobchak

Sep 10, 2007, 05:39 AM	#22
.:R2theT macrumors regular Join Date: Jul 2007 Location: VR6	Record company first! Personally, I think we would see Apple start an iTunes recording company(actually signing artists) before we see them become a wireless provider. Heck, they may do it all. Apple seems to have no problem reinventing and refreshing itself into new markets as it pleases. They do seem to have an awful lot of irons in the fire, though.

Sep 10, 2007, 05:51 AM	#24
mrthieme macrumors regular Join Date: Nov 2006	This whole topic has been very exciting, the idea of a good wireless connection everywhere we go along with a way for many to break away from the monopoly that providers have in many areas. A network like this, if it were fast and dependable could replace my cell carrier, cable provider for internet and television, and maybe even the phone landline to my house. A collaboration with Google and Apple would be interesting to say the least. I see a chance to stick it to many markets here, and I would gladly pay to help the cause. __________________ "MTV is to music what KFC is to chicken"

Sep 10, 2007, 05:51 AM	#25
hob macrumors 68000 Join Date: Oct 2003 Location: London, UK	As mentioned by some already, I think Apple would be wise to invest in a Google project that was going ahead. Presumably this would mean that Apple gets first dibs on anything Google was offering. I wonder if this will happen in the UK in 2012 - when Analogue TV is shut off totally. __________________ see robmac.net for my work

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