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Apple to Become mobile operator?

rocknblogger

rocknblogger

macrumors 68020
Original poster
Apr 2, 2011
2,346
481
New Jersey
http://9to5mac.com/2012/05/01/indus...c-MacAllDay+(9+to+5+Mac+-+Apple+Intelligence)

9to5 Mac reports that Apple will become a mobile service provider in the near future.

Let's assume for a moment that Apple can pull this off. Would you be happy or satisfied if you can only use your iPhone on Apple's network as the article suggests?

Do you think it would be a mistake to limit the iPhone to only one service?

Let me repeat, assume they can pull it off and get this up and running.
 
Can't see this happening, would create to much noise. Also they would have to work out a deal to become a MVNO and based on how much the carrier's are making with the iPhone I doubt anyone will give them that deal knowing the next move would probably be keeping the iPhone locked to Apple's MVNO venture.
 
At this point, it's not possible. The only carrier likely to be willing to do an MVNO is Sprint/Nextel, and their network, in it's current form, would in no way be able to handle a deluge of millions of additional iPhones. It already broke with a few million when the iPhone launched on their long-forgotten 3G network.

The only possibility would be if Apple bought Sprint-Nextel out completely, and spent a couple of years completely rebuilding and massively expanding the reach of the network using Nextel's 800mhz SMR licenses, and then launched it as an Apple service alongside AT&T and Verizon iPhones. Google would follow suit and swallow up T-Mobile USA, as we know that DT wants out, and they have an OK spectrum position, although without low-band.

The concept of Dynamic Carrier Selection is absolutely awesome, and it would be the final step towards turning the carriers into back-end dumb pipes. There is no way they'd let this happen, however, although I'd love it, as there would be more coverage, and they could also work to make a single plan that functions fully globally without outrageous roaming charges.
 
Diseal3 said:
Can't see this happening, would create to much noise. Also they would have to work out a deal to become a MVNO and based on how much the carrier's are making with the iPhone I doubt anyone will give them that deal knowing the next move would probably be keeping the iPhone locked to Apple's MVNO venture.
Click to expand...
Actually this is a good response.

A few years ago I did consulting work for our biz for one of the largest MVNO's for Verizon. Learned a lot about that industry, which is a cluster f' and complicated as hell lol. Still stay in touch with them. I just don't see this happening. I don't see the carriers "wanting" Apple as a MVNO. And seriously doubt Apple will build out it's own tower network, look how long and $$$ it's taken all the carriers to get to where their at now and still updating and expanding that would be risky and extremely capital intensive even for Apple. Maybe if they acquired a carrier like Sprint (doubt it), or majority shares of AT&T OR Verizon (doubt it too). For one thing majority of their cash is overseas for tax purposes, I'll leave it at that.

Basically.... just don't see it happening.
 
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Industry Analyst expects....the minute I read that I stop reading. These so-called analysts expect lots of things. :rolleyes:
 
All the money in the world won't buy you radio spectrum until the government frees it up.

Even T-mobile's network and spectrum assets will completely dwarf any entrance Apple would try to make into the mobile operator market.

The only way that Apple could enter the market is to:

1. Lease spectrum from a current provider (like Virgin mobile, etc) and operate as a second tier provider

-or-

2. Buy T-mobile USA

AT&T tried to buy T-mobile for $39 billion dollars. Sprint, the people of the USA and the United States Department of Justice quashed the acquisition.

T-mobile's parent company, Deutsche Telekom, is still interested in selling.

It would be a *bold* move for Apple, but it would absolutely destroy their profitability in the near term and foreseeable future. Assuming that they could keep operations working smoothly, they would still need to sell a LOT more iphones, a LOT of iPads, and a LOT of Apple TV's to leverage the synergies.

Even then, this would put them in direct competition with Verizon, AT&T, and Sprint (not to mention Comcast and Time Warner). Those companies are the bread & butter for Apple. I don't think that Apple is ready to take on a cabal of entrenched commercial utilities.
 
Also important to note, even though Apple has all this money in the bank the stock holder's would not let this happen as other user's stated this would hurt short term and even long term profitability of the company which is a no-no on wall street.
 
Tarzanman said:
All the money in the world won't buy you radio spectrum until the government frees it up.

Even T-mobile's network and spectrum assets will completely dwarf any entrance Apple would try to make into the mobile operator market.

The only way that Apple could enter the market is to:

1. Lease spectrum from a current provider (like Virgin mobile, etc) and operate as a second tier provider

-or-

2. Buy T-mobile USA

AT&T tried to buy T-mobile for $39 billion dollars. Sprint, the people of the USA and the United States Department of Justice quashed the acquisition.

T-mobile's parent company, Deutsche Telekom, is still interested in selling.

It would be a *bold* move for Apple, but it would absolutely destroy their profitability in the near term and foreseeable future. Assuming that they could keep operations working smoothly, they would still need to sell a LOT more iphones, a LOT of iPads, and a LOT of Apple TV's to leverage the synergies.

Even then, this would put them in direct competition with Verizon, AT&T, and Sprint (not to mention Comcast and Time Warner). Those companies are the bread & butter for Apple. I don't think that Apple is ready to take on a cabal of entrenched commercial utilities.
Click to expand...
Bingo, and I don't see AT&T or Verizon letting or wanting Apple to be an MVNO of theirs.
 
rocknblogger said:
http://9to5mac.com/2012/05/01/indus...c-MacAllDay+(9+to+5+Mac+-+Apple+Intelligence)

9to5 Mac reports that Apple will become a mobile service provider in the near future.

Let's assume for a moment that Apple can pull this off. Would you be happy or satisfied if you can only use your iPhone on Apple's network as the article suggests?

Do you think it would be a mistake to limit the iPhone to only one service?

Let me repeat, assume they can pull it off and get this up and running.
Click to expand...

I bet the FTC will be all over them. Obama does not like successful corps.
 
These are all great replies and well thought out arguments regarding why it probably will not happen or cannot happen.

But that's not what I asked. Suspend your disbelief for a moment and imagine that Apple can or did pull it off. After all if there is one company with big enough balls to try and even possibly succeed, it's Apple.

So as owners of everything Apple and especially an iPhone, would you like this?

Do you think this is a good thing for iPhone users or not good?

This is what I'd like to hear opinions on. Not whether it can happen but if it did?
 
Never. They would need spectrum and bands, most of which are either already eaten up or are being bid on. They'd have to buy out a carrier, and even still they'd need one across all continents to make that a reality. I'm also thinking this could be anti competitive.
 
This has come up almost yearly since the very beginning. Jobs envisioned the iPhone to essentially be a VOIP device that ran completely through Apple's properties. Obviously it didn't happen that way. For whatever reason it gets brought back up as "news" every now and then.
 
Apple wants end to end control. I think it would have been more likely in the the days of Jobs than Tim Cook, especially considering the dividend and buy-back program they are doing now, which will burn through a lot of their cash reserves.

Technically speaking, if they were going to buy a carrier, they would buy Sprint-Nextel, as they have the SMR band nationwide, which would allow them to go and build the network out with low-band. However, even that would cost billions in additional network build-out after they bought them.

It just doesn't make a whole lot of sense. And if they went the MVNO-only route, even with Dynamic Carrier Selection, they would definitely lose Verizon, and Verizon isn't terribly interested in that sort of thing. AT&T would probably have to do it, Sprint definitely would, but that would end up leaving Apple a lot worse off than they are, with the VeriPhone.
 
Apple is one of the biggest threats to open platform computing that exists today. It would be a disaster if they entered the mobile network provider market.
 
Eh, I'm not a big fan of vertical integration. Apple already has enough control over enough points of the ecosystem, I'd rather leave the carriers separate.
 
(Exhibit A)
Liz: What’s vertical integration?
Jack: Imagine that your favourite corn chip manufacturer also owned the number one diarrhea medication.
Liz: That’d be great cuz then they could put a little sample of the medication in each bag.
Jack: Keep thinking.
Liz: xcept then they might be tempted to make the corn chips GIVE you…
Jack: Vertical integration.
Liz: Wow, that should not be allowed to happen.

(Exhibit B)

[http://en.wikipedia.org/wiki/List_of_mobile_phone_makers_by_country#United_States]

Apple
Dell
Garmin
HP
Motorola
Palm
Sonim

Do you notice that there are no cell carriers on the list? That's because it's against the law for US carriers to manufacture devices that they sell on their network. For confusion on why, see Exhibit A.
 
9to5 Mac reports that Apple will become a broadband service provider in the near future.

Let's assume for a moment that Apple can pull this off. Would you be happy or satisfied if you can only use your Mac on Apple's network as the article suggests?

Do you think it would be a mistake to limit the Mac to only one service?

Let me repeat, assume they can pull it off and get this up and running.

---

So, why mobile service provider?
 
mrsir2009 said:
9to5 Mac reports that Apple will become a broadband service provider in the near future.

Let's assume for a moment that Apple can pull this off. Would you be happy or satisfied if you can only use your Mac on Apple's network as the article suggests?

Do you think it would be a mistake to limit the Mac to only one service?

Let me repeat, assume they can pull it off and get this up and running.

---

So, why mobile service provider?
Click to expand...

You can't just MVNO your way into a land-based provider. Mobile makes a lot more sense, since the connection to the device is a lot more direct. It just doesn't make sense in the US, given the way the market is here.
 
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