“Four years ago, an Apple patent surfaced that outlined how the consumer electronics company might become something called an MVNO,” Brian Barrett writes for Wired. “Rumors to that effect have persisted for years, most recently resurfacing this week at Business Insider. Apple swatted the latest aside, telling CNBC that it hasn’t discussed and isn’t planning anything of the sort. And that’s a shame, because it absolutely should.”
“MVNO may sound like an obscure pharmaceutical stock ticker symbol, but it stands for ‘mobile virtual network operator,’ which is admittedly still pretty inscrutable,” Barrett writes. ” In practice, though, it’s very straightforward, explains telecom industry analyst Jeff Kagan. ‘An MVNO is simply a reseller,’ says Kagan. ‘It’s a company who strikes up an agreement with a wireless network to sell wireless service without owning their own networks.'”
BREAKING: Apple says it has not discussed & is not planning MVNO cellular service following reports saying it was planning on doing that.
— CNBC Now (@CNBCnow) August 4, 2015
“Apple is popular. Carriers are not. So why cede so much of your customer’s iPhone experience to the latter?” Barrett writes. “It’s not a small gap, either. In the 2014 American Consumer Satisfaction Index, Apple ranked 15th overall, and just narrowly second (behind Amazon) among technology companies. AT&T, T-Mobile, and Sprint all sit near the bottom, while Verizon managed to split the difference, likely thanks to its perennially reliable coverage. Selling iPhones, then, must often feel like serving filet mignon in an Arby’s… Apple may be waving off the idea of an MVNO for now. It shouldn’t. Not if it wants what’s best for Apple, for its customers, and for anyone with a data plan.”
Read more in the full article here.
MacDailyNews Take: Business Insider. Wrong again. Shocking.
Obviously, we’re in the silly season now. And, this ever-recurring Apple MVNO rumor predates the iPhone itself.
Surely Apple has a long-range plan. Despite what many of us think we want, if becoming a MVNO were so beneficial, if the positives so outweighed the negatives, Apple would have become one long ago.
SEE ALSO:
Apple MVNO coming soon? – August 3, 2015
MVNO: Should Apple become its own cellular carrier? – May 7, 2015
Expert: Apple plans to crush carriers and offer direct mobile service – May 1, 2012
The crazy master plan that could complete Apple’s mobile domination – November 29, 2011
Does Apple want to be its own carrier? MVNO patent application extended – June 2, 2011
Apple granted ‘Dynamic Carrier Selection’ patent where carriers bid to provide service to iPhones – February 9, 2011
Apple to soon become MVNO? – December 05, 2008
Apple’s unprecedented, almost unbelievable iPhone business model: hassle-free MVNO – October 01, 2007
UBS analyst: Apple may launch MVNO, serve as own carrier for ‘iPhone’ – December 13, 2006
Cingular music deal suggests possible Apple MVNO for ‘iPhone’ – November 01, 2006
Many expect Apple to launch its own cellular service (MVNO) before year’s end – April 22, 2006
Apple to become mobile virtual network operator (MVNO)? – April 19, 2006
Analysts tackle Apple’s ‘Mobile Me’ patent, iPhone rumors, MVNO possibilities – January 19, 2006
Apple may eventually introduce its own ‘iPhone’ cell phone-iPod combo and create Apple MVNO – September 12, 2005
Being an MVNO would be really bad idea, Apple would inherit all the problems of the underlying carriers, be directly blamed for them but would have its hands pretty much tied in ways in ways of bringing improvements. It’s a service that sits too close to consumers to be outsourced IMHO.
Becoming a “meta-operator” as they’re experimenting with using the Apple SIM on the iPad might be the better solution.
Does not make sense, in the big picture. If Apple, the manufacturer of iPhone, decides to sell iPhone paired with its own branded wireless service, isn’t Apple competing against its existing wireless carrier partners? It’s similar to Microsoft buying Nokia’s phone business while also trying to get other phone makers to adopt and license the Windows Phone platform. That worked out so well… 🙂
It only makes sense if iPhone was a “niche” product with a limited audience, and ONLY offered iPhone using this MVNO approach. But iPhone needs to be available with ALL the major carriers. The overall iPhone user experience is more or less the same high quality, no matter which wireless carrier is used. It works because (unlike other phone makers) Apple insists on minimizing the role of wireless carrier; they just provide the “pipes.” There’s no “AT&T” or “Verizon” decal on iPhone. Apple controls software updates; ALL iPhone owners get them at the same time (when Apple decides), regardless of carrier. Apple owns and controls the one and only official iOS App Store. Customers deal with Apple for warranty issues. So in effect, Apple has already attained the benefits of this MVNO thing, without the effort or expense of running it.
Next dumb rumor Apple plans on opening Apple Coffee Shops. 😄
I am surprised that Apple would comment. Does not Apple usually ignore online chatter?
I’m also surprised they would comment on something like this when they remain silent on almost everything else. I’d rather them comment that Apple isn’t in as much trouble as everyone claims it is. I’m just saying it might calm the Nervous Nellies if that’s what’s causing the Great Apple Dump.
Why can’t Apple do something to get investors excited instead of causing them dump the stock for any reason at all. AAPL should be steady as a rock instead of performing like Silly Putty.
Becoming a MVNO would coast Apple thousands of iPhone point of sale locations all over the world. Really dumb idea.😱😖
Perhaps Apple is considering MVNO connectivity for the Car technology it’s working on? To provide a direct Internet connectivity for its tech package?
Stupid rumor of the week dies the death.
No, we’re not planning to become an MVNO
DUH.
Useful suggestions – I was enlightened by the facts . Does someone know where my business would be able to find a sample a form form to fill in ?