A rumor circulated on Monday that suggested Apple is working to deploy its own mobile virtual operator network (MVNO) that would piggyback on networks owned by the major U.S. wireless carriers in the United States.
It’s a common practice for smaller telecom providers who don’t have the capital to bid on wireless spectrum or build supporting infrastructure.
There is a sense of feeling that Apple Inc. However, there are two recent developments that make the possibility a little more feasible. It will pay large sums of money to carriers to offer service for iPhones, but carriers will lose all connection with the customer.
The original report had claimed that Apple’s intentions to start a mobile carrier of its own was an open secret in the telecom industry. Only once Google was troubled with searching the internet, previously it has released Project Fi, which is its Wi-Fi and MVNO service that works with the Nexus 6 phone.
Telstra has signed a deal with Apple to offer the telco’s postpaid customers a 12 month free Apple Music membership. Apple likes to control as many aspects of its business as possible – its retail footprint is an obvious example – so such a move would be consistent with that approach.
What’s more, Apple is said to be in talks with European networks about launching on this side of the Atlantic too. The carriers will then place bid for leasing their services to Apple. The service has been pondered upon previously, and Apple is recognized for performing hardball games with the phone firms.
Even if Apple could convince them to do so, it might not be in Apple’s long-term interest. But in situations where reception is poor on one network, an iPhone on Apple’s virtual network would have the ability to hop onto another allied network with better service in its area. However, there is an element of doubt whether the company will really launch the service.
Banking on a smartphone or tablet has overtaken online banking. Getty Images