Following the iCloud voicemail transcription news from earlier today, Business Insider is reporting that Apple may actually be following Google’s Project Fi into the “becoming a carrier” field.
Sources close to Apple say that the company is privately trialling an MVNO service in the US, but is also currently in talks with telecoms companies in Europe about bringing the service there too.
MVNO or Mobile Virtual Network Operator is a wireless communications services provider that does not own the wireless network infrastructure over which the MVNO provides services to its customers. Google’s Project Fi uses Sprint and T-Mobile’s infrastructure and combines them to become a “super-carrier”.
Apple of course announced the so far iPad-limited Apple SIM last year which allows you to choose between a handful of network carriers for iPad data on a month to month basis.
Three weeks ago, the UK-based FT reported that Apple and Samsung were in talks with carriers to launch “e-SIM” cards and and Apple MVNO service might be an evolution of that.
The idea behind the talks is a universal standard for embedded SIM cards (“e-SIM”) that are built into the phone and not user accessible. These subscriber identity modules would allow customers to sign up for service on any network they wanted, then allow them to switch at any time (obviously with some limitations placed by the carriers).
Apple isn’t the only smartphone manufacturer in these discussions. Samsung is also reported to be part of the talks, meaning this tech could become a real standard across iPhone and Android devices, unlike Apple’s current SIM which is locked specifically to the company’s hardware.
Apple has a long history of flirting with the MVNO business with an insider revealing that Steve Jobs wanted Apple to become a carrier before the release of the iPhone (if only!). Telecom vet and former CTIA chairman John Stanton had worked with Jobs on the project…
Stanton, chairman of venture capital firm Trilogy Partners, said he spent a fair amount of time with Jobs between 2005 and 2007. “He wanted to replace carriers,” Stanton said of Jobs, the Apple founder and CEO who died Oct. 5 after a battle with cancer. “He and I spent a lot of time talking about whether synthetically you could create a carrier using Wi-Fi spectrum. That was part of his vision.”
Apple, for its part has patented the MVNO process that others have taken and then re-upped on that patent.
Analysts have also long thought that Apple was planning to enter the carrier business. Here are main points from a sideshow revealed in 2012.
- Apple will in the near future begin providing cellular service, data, voice and roaming, directly to its customers.
- Apple will begin by offering mobile data plans bundled with iPads (vs. current practice of selling GSM iPads with AT&T data and CDMA iPads with Verizon data plans).
- Apple will then offer iPhone customers activation, data and international roaming plans through the iTunes Store.
- Apple will provide voice, data and messaging plans directly to its iPhone customers, on an ala carte basis as an alternative to their current mobile operator and then as wireless service provider directly to customers.
- Google, while behind Apple in technology, distribution and back-office capabilities, will nevertheless follow in lock-step behind Apple and provide wireless data services directly to its Google Tablet customers.
Virgin, a Sprint MVNO was dropped from carrying the iPhone after the holidays but was brought back in the fold this week. Would you want to replace your carrier with Apple? You might be able to.
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Good news: Apple puts the customer experience first.
Bad news: Apple can’t do services worth a darn even over the internet. Tough to imagine they’d get cellular service right, out of the gate.
So in other words…. Apple would probably be like TMobile.
Apple would probably use T-Mobile and Sprint, just like Google does for it’s MVNO; as AT&T and Verizon would be a more expensive to lease out. Unless they want to repartner with AT&T again to launch something new.
It would have to be very compelling. I have unlimited data now through Verizon on an old Alltel contract, and I would hate to give it up unless Apple’s is significantly cheaper.
How about we act now to make sure that the carriers can’t do shit about this? They don’t deserve to be able to have any control over this.
Apple would have to really build out a network with more coverage than T-Mobile and more bandwidth than Sprint.
T-Mobile is the big Black Hole in my neighborhood and friends who have Sprint say the bandwidth is so over sold that it’s not worth the (lower) cost.
I’d like to se Apple buy a bunch of bandwidth and start a REAL National Carrier service. Spend some of those reserve $$$$
If they can offer unlimited talk text +5GB data free international text for $50 including tax yes I will sign up with condition of not using T-MOBILE OR SPRINT NETWORKS
This would be wonderful. I am jealous of the plans offered via Project Fi. Canada really needs better operators. Koodo is a good choice for price and speed, but their data plans over 2GB cost just as much as the other guys.
I would happily switch from Verizon to an Apple based phone and data network if it were well done. I’d rather pay Apple than Verizon. I bet we could see deals on bundled Apple services – i.e. iCloud storage, Apple Music subscriptions, Apple TV service subscription and this eventual phone service for a unified somewhat discounted price. Could be great, if well done. Let’s hope they take their time and get it right.
If Apple does start a MVNO, they should definitely go with Verizon as a supported carrier, Verizon is one of the best carriers out there, and I have been using them for years and have never had a problem with them. While yes, they are expensive, they are reliable!
Would you replace your cell carrier with an Apple MVNO? SIMPLY PUT “YES” I would REPLACE my cell carrier with an Apple MVNO…
Oddly, I think a Google / Apple partnership would do wonders here over the next 10 years.
I’d switch tomorrow just to send the bulk of my funds to Apple instead of AT&T.