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

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.

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.