Apple to Become Wireless Provider?

nonsuchworks writes "Forbes reports on the possibility of Apple becoming a 'mobile virtual network operator,' or MVNO, in order to extend the iTunes and iPod brands into the cellular phone market. This would allow Apple to circumvent the cellular carriers who have so far balked at carrying the iTunes-enabled mobile phone." From the article: "It might sound far-fetched, but the pieces are in place for it to happen later this summer. Apple is already developing a hybrid iPod/cell phone with handset maker Motorola. And companies ranging from the Virgin Group to The Walt Disney Co. are proving that a new network model can allow all kinds of businesses to easily enter the mobile market."

Comments

It's about time.

[Iriel]

I always thought that Apple should have made some sort of uber-wi(fi|max) iPod so that iPodders could stream the internet radio stations on an iPod like they could on iTunes. And besides, if it all works out as predicted, this could help crush Bill Gates' dream of destroying iTunes and the iPod and their dominance over the digital music market. It sounds like fun :)

An interestesting pulled from the ass idea

[Dark Paladin]

OK, so this is one of those "well, I just pulled this idea out of my ass so I could write my column thought".

But if nothing else, it's a very interesting one. Several commentators, including Bill Gates, have stated that they believe that the cell phone will overtake the iPod. You're more likely to carry around a cell, it has an established system of purchasing music (among other things), and so on.

Granted, I still take that with a heavy grain of salt, considering that my own PDA/phone (Treo 650) tends to go about a full day on the charge, and that's from a heavy user who uses it for email, AIM, speech, ebook reading, notes, calendar, and so on. I have to make sure I plug it in before I go to bed. My iPod lasts a bit longer (though if I used it as much as the Treo, it would probably die as quickly, if not faster). The iPod is just a better interface for music, and crappy for all else.

So the concept that Apple could go after the wireless market isn't so far fetched. Would anyone have thought of them a major player in the music industry? They have a brand name that's good (if not growing), and it would be a good way to suppliment the PC business. And it would remove some problems. Right now, according to the rumors, most wireless carriers don't want to carry the iTunes Mobile Phone because it would cut into their business.

So, fine: Apple makes their own service and gives the finger to the phone companies. How many iPod users (and Mac heads) would switch?

For it to work, they would need:

Capital - check, they still have a few billion left in the bank.
Manufacturing - check, not a major problem
Engineers - check, though they'd probably need to hire some
Wireless access points - Hm.... That may be a reach, but as the article points out (yes, I did RTFA) if Disney can do it, so can Apple. Whether that means they go out and buy someone, or just buy up/rent the wireless access points, they certainly have the means and the business acumen. Jobs has demonstrated the ability to negotiate in the past, if done right (say like the current Sprint model I'm using, where $40 gives 500 minutes, and an extra $15 gets me unlimited Internet access), they could make it work. Make the phones a combo phone/802.11 device for Skype/Gizmo like communications, and those Airports become all the more useful to their business model. Or start installing WiMax stations around the country for the same effect.

So, points to the author for coming up with a possibly viable idea. Will Apple do it? Probably not now - they have enough risk on their hands with the shift to the Intel processors and dealing with a potential loss of sales over the next 18-24 months. But if the wireless companies continue to play hardball with Jobs's (note to the picky: his name is Steve Jobs, the plural then becomes Jobs's, thank you) music domination plans, he might just do an end around.

We'll see. Most of this I'm pulling out of my ass, so of course I could be wrong.

How about...

[alvinrod]

They create a mobile iTunes software that can work with the phones for just about any manufacturer and try to get some contracts with Verizon, Cellular One, and the other big companies.

Starting their own company gives them more control, but they also have all these other big companies that are going to try to run them out of business. However, if Apple sticks to its $.99 per song and allows people to use a full song for a ringtone rather than selling crappy midi files for $2.50 that play 10 bars of some obscure part of the song, they might put a dent in the other company.

I understand that Apple is trying to expand and stay one step ahead of the competition (especially with Microsoft wanting to get in on the market), but it seems like Apple is starting to wander out of its realm a little bit, which makes me think of another company that tries to do everything and usually ends up with a subpar product that is beaten by a company that focuses on that area.

Then again, if the other big phone companies aren't willing to play ball (which they probably aren't. Would you want to stop charging ridiculous amounts for a ringtone?) what choice does Apple have other than this one?

Hopefully they'll make a product that's fair to the consumer. Basically, I'd want good coverage, the ability to upload songs I've already purchased, and the same $.99 to purchase a song on my phone. Capacity for 100+ songs would be nice as well. Price doesn't matter since you can give it away for a lot less than it costs when you make someone sign a service plan for a few years.

If it met those conditions, I might consider getting one.

Re:hybrid iPod/cell phone

[illtron]

Well I think the iTunes phone is a pretty sure bet. Between these shots of the phone: http://www.engadget.com/entry/1234000887049175/

And the fact that support for them is already in iTunes (yeah, I know it says iPod phone, but that's not the same as a "hybrid iPod/cell phone"):
http://appleinsider.com/image.php?i=itunesiphonepr efs&id=1158

There's no doubt that it's coming. But it won't be a hybrid iPod/cell phone.

Re:T-Mobile, next acquisition?

[The Lynxpro]

"Being that Deutsche Telekom has been rumoured to be shopping around T-Mobile, this could be the property Apple should be looking in."

There's yet another reason for Apple to be looking at T-Mobile USA, even if it is only for a 50% acquisition/partnership. The reason being the T-Mobile "Hot Spot" network. And who is the big corporation with thousands of locations partnered up with T-Mobile on this and proudly displaying their logo on their doors? Yep, you guess it, Starbucks.

Bet you thought I was going to say "Frank Stallone" in some weird homage to Norm Macdonald, weren't ya?

The other reason to do so is to have gorgeous Catherine Zeta Jones as a spokeswoman for Apple. Yep, that's something to bite into... :)