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Apple To Become Mobile Virtual Network Operator?

09 Jul 2005

From Forbes : NEW YORK – Apple Computer Chief Executive Steve Jobs has a reputation for thinking different. But now he might be planning a move for Apple that will leave even his biggest fans surprised–becoming a phone company.

Tune in to some excerpts from the [Forbes] publcation :

[...]“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.”

[...]“On Wednesday, Disney said it plans to launch a family-centric wireless phone network sometime next year. The venture, called Disney Mobile, will sell mobile service, custom handsets and premium phone content, like ringtones and games featuring Disney characters.”[...]

“Disney will gain access to a dedicated, direct marketing channel to kids, benefiting both from network revenue and from selling its content in a new medium.”[...]

“This way of doing business in the mobile market, known as the “mobile virtual network operator,” or MVNO, is an increasingly popular and successful model for all different kinds of companies.

In December, Disney subsidiary ESPN launched its own mobile network, offering consumers custom sports news and multimedia.

Internet service provider Earthlink did the same in October, targeting high-end users who like to use their phones for e-mail and data access.

And since its launch in 2002, the Virgin Group’s youth-centric Virgin Mobile USA has surged to over three million subscribers, and a public offering is reportedly in the works for later this year.”[...]

“Apple is not the only big company that might roll out cellular service this year. Analysts suggest that other companies with strong brands could be planning their own networks, including Nike and Wal-Mart Stores.”

The solution could be for Apple to launch its own cellular network, doing an end run around carriers and providing the company with revenue from both selling phone handsets and from the resale of cellular service.

“You could certainly see Apple emerge as an MVNO, and then they could control how the phone works,” says Enderle. “It would undoubtedly be the better path for Apple. I think they would be smart to do it.”

If Apple launched their own virtual network, they could even tie it in to their iTunes Music Store. This would allow them to obtain more revenue from the direct sale and download of digital music to phone handsets.”

So. Now you know.

Apple

Read the entire article on [Forbes]

via [Engadget]

 
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Posted by Miel Van Opstal in Corporate News, Mobile & VoIP, Technology

 

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