As I write this article, quiet whispers are evolving into shouts throughout the technology world with news that Apple (News - Alert) could potentially be unveiling its own wireless connectivity network sometime in the near future. Wireless industry strategist Whitey Bluestein is predicting that the company is launching its own network in order to power services to iPhone (News - Alert) and iPad customers directly, allowing for billing to be handled right through iTunes.
A recent article featured on the GottaBeMOBILE website revealed that these rumors are nothing new as there have been rumblings of the creation of an Apple wireless network ever since the first iPhone was released way back in 2007.
“Before Apple unveiled the original iPhone, many had pondered how Apple would make a dent in the wireless industry, and one such suggestion would be to offer both hardware and software and wireless service together in a complete package,” the article revealed.
However at this time, Apple still hasn’t confirmed or denied the allegations. “What has been holding Apple back from becoming a wireless provider already, according to Bluestein, are the enormous handset subsidies paid by mobile operators (AT&T, VZW and Sprint (News - Alert) in the US), which amount to about $381 for each iPhone sold today,” Bluestein noted. ”That has been a short-term stumbling block for Apple, but the company has its well-known cash reserves and could seize the initiative at any point.”
If the company does happen to put its foot into the wireless connectivity space, chances are Apple will make its entry through the MVNO model, which enables it to first purchase data and voice in bulk from national carriers and then power an end-to-end experience at a reduced cost than what other competitors are currently offering.
As customer demand continues to increase and they require faster connectivity, access to just-released apps, and cloud-based services–Apple could be the missing piece to the wireless connectivity puzzle.
Edited by Rich Steeves