Apple Denies Rumors of Plans to Launch MVNO Carrier Services

[skellener]

Article from 2010 seems fitting....

No video iPod.
No iPhone.
No need for an iPhone SDK.
No iPad.
No iBooks.
No multitasking.

 

[Andres Cantu]

Yes it does.

When someone says "bigger pro iPad!" and Apple says "we have no plans" and then they change their mind later, that's fine.

But if Apple says they're not entering an entirely new line of business and then they do, that would be securities fraud and someone would definitely be going to jail.

Pretty big difference between the two.

You make a good point. I suppose anything it's possible, just like when Steve Jobs said Apple lets other companies do the work they do best and instead partner up with them, yet they still created Apple Maps. It might not be the same thing, but if there could be a securities fraud like you mentioned, then I see why they are denying the rumor now.

 

[Saucesome2000]

Yes it does.

When someone says "bigger pro iPad!" and Apple says "we have no plans" and then they change their mind later, that's fine.

But if Apple says they're not entering an entirely new line of business and then they do, that would be securities fraud and someone would definitely be going to jail.

Pretty big difference between the two.



Bingo.

My above answer is why they usually keep their mouth shut. In this case it was worth the risk to keep Verizon and AT&T from getting pissed about it.

Trust me, if they are "talking about it", Verizon and AT&T are in on those talks. It would most likely be one of those companies towers they would be using. I would say if there is any truth to this rumor, the denial would be due to the likely NDA that was signed.

 

[Saucesome2000]

Honestly I cannot imagine why Apple would want to become its own cellular network. There is no tangible benefit to their trying to compete against established service provides like Verizon or AT&T, especially in a system where they leased tower access from those same companies.

Leasing the towers wouldn't afford them any more granular control of the iPhone ecosystem than they have now. It would not provide greater call or cellular data stability (likely the opposite). There is just no net benefit... only costs associated with leasing towers, processing customer billing, transitioning customers off existing company accounts over to Apple.

For what? Creating an even further walled-garden for the iPhone? I don't see it happening any time soon.

So you're saying the nearly 50 current MVNO's in the states should close up shop? Apologies if I'm misunderstanding you.

 

[OldSchoolMacGuy]

Of course! They can't just spill the beans.

When has Apple ever issued statements on any of the leaked info on their products? Never that I can recall.

If they're saying they aren't going that direction, it's fairly obvious they aren't going that direction.

 

[Col4bin]

First comes Apple becoming their own mobile carrier and leasing network space... Then possibly buying out a carrier or two… Then comes a similar plan to launch their own Cable TV/internet provider service, and buyout some of the ******s, too. That would be sweet.

 

[OldSchoolMacGuy]

Trust me, if they are "talking about it", Verizon and AT&T are in on those talks. It would most likely be one of those companies towers they would be using. I would say if there is any truth to this rumor, the denial would be due to the likely NDA that was signed.

But why deny it? They haven't denied other rumors before. The only time they've issued statements like this have been when they really had no intention. They denied the rumor in 2008 that they were selling off the pro apps and they have yet to sell them. Cook denied the Tesla buyout rumor last year. It denied it would shut down Beats Music. It denied the rumor it would buy Foxconn.

And while an NDA may be present as you suggest, as a public company they can't simply deny something because of NDA. They instead would be required to simply make no statement in most cases.

Are there any examples of them denying a rumor to cover up the truth?

 

[JustThinkin']

We know what this means:

They are thinking about doing this, they just can't do it yet.

They have discussed this with carriers. And the carriers may not have liked the idea, so the discussions may have remained cursory.


Isn't it funny how you literally have to lie in business when such a (presently) damaging truth comes out? The proof is in the denial. They'll probably stop discussing it for a while - in an attempt to retroactively "make it true."

 

[OldSchoolMacGuy]

First comes Apple becoming their own mobile carrier and leasing network space... Then possibly buying out a carrier or two… Then comes a similar plan to launch their own Cable TV/internet provider service, and buyout some of the ******s, too. That would be sweet.

Never going to happen. Moves like this would likely be illegal and the FTC would never approve such buyouts.

 

[petsounds]

Honestly kind of disappointing. I'd love to never have to deal with a wireless carrier again.

 

[OldSchoolMacGuy]

Yes it does.

When someone says "bigger pro iPad!" and Apple says "we have no plans" and then they change their mind later, that's fine.

But if Apple says they're not entering an entirely new line of business and then they do, that would be securities fraud and someone would definitely be going to jail.

Pretty big difference between the two.

This. Denying it, if true, would likely open them to huge legal repercussions.

When has Apple ever issued a statement denying something that was true? I'd love to see evidence from those squawking that this is the case.

 

[CaryMacGuy]

Maybe someone that understands it can answer this but why would it be in Apple's best interest to launch an MVNO? I am not speaking against the rumor I am really just curious as I don't understand.

 

[TechZeke]

I'll bet the people scrambling to work on Samsung's "S Network" just let out a collective groan.

While I have no hate for Samsung, when Samsung releases something like 'Samsung Pay' they really don't know how ridiculous it makes them look.

The 12" Galaxy Note Pro being released when there were tons of iPad Pro rumors makes it look even worse.

 

[nagromme]

Negative points for Business Insider!

What I think is interesting is they specifically came to deny this rumor, but didn't deny the BMW talks, the upcoming Apple TV leaks, or even the iMac 8K slipup.

Interesting...

If what's interesting is that rumors are true if Apple doesn't deny them... I have sad news

(Apple will let a rumor sit there, true OR false, if it doesn't damage relationships or something equally serious. They let a hundred rumors a day just sit there.)

 

[Saucesome2000]

But why deny it? They haven't denied other rumors before. The only time they've issued statements like this have been when they really had no intention. They denied the rumor in 2008 that they were selling off the pro apps and they have yet to sell them. Cook denied the Tesla buyout rumor last year. It denied it would shut down Beats Music. It denied the rumor it would buy Foxconn.

And while an NDA may be present as you suggest, as a public company they can't simply deny something because of NDA. They instead would be required to simply make no statement in most cases.

Are there any examples of them denying a rumor to cover up the truth?

While I have no claims to be an expert, I do know by being in this business (cellular and hardware business) that lawyers have to constantly change the language on everything that comes from the mouths of those speaking on behalf of companies. Just because they used certain language to deny something in 2008, does not mean the same tactics would be used today. Also, these rumors would imply that they are working with another extremely large company such as VZW or AT&T and would have to speak in the language that is also agreed upon by the parter company.

But again, rumors are just rumors until they become truth, so who knows. I do know that Google is doing the same, so it makes sense that way. I also know that wireless communication is the future and it would make a lot of sense for Apple to entertain the idea of becoming an MVNO. On the Fortune 500, AT&T is number 12 and VZW is number 14. Our entire lives will be run on a wireless communications network in the future and Apple would be smart to have their hands in as many facets of the industry as possible.

 

[Rogifan]

Read their quote again. It reads the exact same way all of their denials do. They have no plans and are not currently talking with anyone. That means nothing because they could start talking to ATT tomorrow and planning and they wouldn't be misrepresenting anything.

They rarely deny anything because they rarely comment on anything. That is because they are still working closely with carriers. Apple knows that once carriers stop subsidizing $700 iPhones, Apple's sales will drop like a stone. They cannot rock the boat, at least not until they figure out how to sustain the iPhone business model beyond subsidies and broaden their product line a little.

Huh? Mobile carriers have been moving away from 'subsidies' for a while now. Go to at&t's website and all they quote you is what the phone will cost you per month, not the $0, $99, $199 they used to quote you. People not paying the full price of a phone upfront isn't going away any time soon. Do you have any evidence that Next, Edge or what T-Moblie and Sprint are doing is negatively impacting iPhone sales?

 

[OldSchoolMacGuy]

But again, rumors are just rumors until they become truth, so who knows. I do know that Google is doing the same, so it makes sense that way. I also know that wireless communication is the future and it would make a lot of sense for Apple to entertain the idea of becoming an MVNO. On the Fortune 500, AT&T is number 12 and VZW is number 14. Our entire lives will be run on a wireless communications network in the future and Apple would be smart to have their hands in as many facets of the industry as possible.

Google is in the wireless provider business because it benefits them. They get to collect information about every single website, text message, email, and interaction that person sends and sell it to advertisers. Their use for that data is why it makes sense for them. Why does it make sense for Apple, who doesn't currently care about any of that as they don't make money in that way.

 

[SmileyBlast!]

Rumors concerning consumers are one thing, rumors considering your partners in an on-going multi-billion dollar business enterprise are something else entirely.

Well the rumor was starting to take hold as fact.
http://www.businessinsider.com/apple-in-talks-to-launch-an-mvno-in-the-us-and-europe-2015-8

If enough carriers started to believe it they could be less incentivized to sell iPhones so as not to make a potential competitor even more profitable.

 

[Waxhead138]

Honestly I cannot imagine why Apple would want to become its own cellular network. There is no tangible benefit to their trying to compete against established service provides like Verizon or AT&T, especially in a system where they leased tower access from those same companies.

Leasing the towers wouldn't afford them any more granular control of the iPhone ecosystem than they have now. It would not provide greater call or cellular data stability (likely the opposite). There is just no net benefit... only costs associated with leasing towers, processing customer billing, transitioning customers off existing company accounts over to Apple.

For what? Creating an even further walled-garden for the iPhone? I don't see it happening any time soon.

And to further your sentiment...everyone was chanting for unlim data. Agreements with existing carriers (specifically ATT/ VZW) for an MVNO wouldn't mean that for consumers. They would still dictate the terms of network bandwidth with the same philopsophies they use now. Pipedream.

 

[Saucesome2000]

While I have no hate for Samsung, when Samsung releases something like 'Samsung Pay' they really don't know how ridiculous it makes them look.

The 12" Galaxy Note Pro being released when there were tons of iPad Pro rumors makes it look even worse.

I don't see how. By that rule, they should never try to be competitive unless they come up with the idea or product first. Second place behind Apple is a very nice place to be in. Should Microsoft not have released Windows since the Apple Lisa already had a GUI?

 

[Rogifan]

This. Denying it, if true, would likely open them to huge legal repercussions.

When has Apple ever issued a statement denying something that was true? I'd love to see evidence from those squawking that this is the case.

Yep. Remember Apple never commented on any of the Beats rumors.

 

[Saucesome2000]

Google is in the wireless provider business because it benefits them. They get to collect information about every single website, text message, email, and interaction that person sends and sell it to advertisers. Their use for that data is why it makes sense for them. Why does it make sense for Apple, who doesn't currently care about any of that as they don't make money in that way.

All I know is that in this business, ahem - the many businesses that Apple is a part of, things change every day and they have to stay ahead of the game. Who would have thought they would get into the cellphone business in the first place?

Time will tell, brother. I for one hope they do become an MVNO. Competition would be good for the big 4.

 

[TechZeke]

I don't see how. By that rule, they should never try to be competitive unless they come up with the idea or product first. Second place behind Apple is a very nice place to be in. Should Microsoft not have released Windows since the Apple Lisa already had a GUI?

Touche; I guess it's just that most people make such a big deal when Apple releases something after someone else. When a company like Samsung makes something that is not only the exact competition to said product, but it follows the same naming scheme, no one bats an eye.

Apple adds multitasking to iOS 9, or makes a big screen iPhone? Every Android user and tech site in America makes an article or comment on how Apple copies Android. Samsung makes Samsung Pay right after Apple Pay? No one cares.

I don't think its a big deal. Without other features that first appeared in other OSs, Both platforms would suck.

 

[Saucesome2000]

Touche; I guess it's just that most people make such a big deal when Apple releases something after someone else. When a company like Samsung makes something that is not only the exact competition to said product, but it follows the same naming scheme, no one bats an eye.

Apple adds multitasking to iOS 9, or makes a big screen iPhone? Every Android user and tech site in America makes an article or comment on how Apple copies Android. Samsung makes Samsung Pay right after Apple Pay? No one cares.

I don't think its a big deal. Without other features that first appeared in other OSs, Both platforms would suck.

You're exactly right and that's why I ignore the people on both side of that argument. Competition is good, innovation is great, improvement on an existing technology is awesome. That's how the consumer wins, which is why I'm baffled why there are haters on either Team Apple or Team Android.

 

[Saucesome2000]

And to further your sentiment...everyone was chanting for unlim data. Agreements with existing carriers (specifically ATT/ VZW) for an MVNO wouldn't mean that for consumers. They would still dictate the terms of network bandwidth with the same philopsophies they use now. Pipedream.

Many MVNO's have unlimited plans - Cricket, Straight Talk, etc. That's their biggest selling feature.