“There are a number of reasons why offering its own cellular service may not make sense [for Apple], especially at this moment in time,” Ina Fried writes for Re/code. “Consumers today are benefitting from four carriers heavily competing against one another, with a resurgent T-Mobile and an increasingly desperate Sprint both putting price pressure on AT&T and Verizon.”
“Also, carriers spend a fortune to keep their networks strong enough to handle increasing demands and to swiftly upgrade to faster technologies,” Fried writes. “If they become truly a dumb pipe just selling gigabytes to Apple, the incentive to differentiate on customer service or speed is reduced, as would be the amount of capital they would have to invest. Over time, that could mean both Apple and consumers would lose.”
Fried writes, “Plus, if it is Apple’s name attached to the service, it would have to take on the role of customer support and the perceived blame when the service doesn’t meet customer expectations.”
Read more in the full article here.
MacDailyNews Take: Too many downsides and not enough upside for am Apple MVNO. Maybe someday it’ll make sense – in some places. After all, the iPhone is a worldwide phenomenon. Operating a bunch of disparate MVNOs in various countries, with varying rules and laws and quality of coverage(s), would be a bag of hurt. Let the carriers duke it out to retain their coveted iPhone customers.
SEE ALSO:
Apple: No, we’re not planning to become a MVNO – August 4, 2015
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