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  1. #1
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    Potential New Wireless Carrier....

    Apple, at least that is what this analysts thinks.

    Apple will soon offer wireless service, expert believes | Fox News


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    Re: Potential New Wireless Carrier....

    This fascinates me greatly. There isnt a whole lot of competition with their amount of cash. Seems odd to make this leap, but if anyone can do it, its them.



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    Re: Potential New Wireless Carrier....

    What they don't mention is wireless spectrum. Where will Apple get that? It isn't like there is an abundance of signals available. So they rent from AT&T/Verizon or they'll have to buy their own from someone else. If they were really serious, it may be easier to purchase TMobile or some smaller carrier.



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    Re: Potential New Wireless Carrier....

    It is very interesting to me. It would be a huge risk for them, however, if it worked out and they can somehow get wireless speeds fast enough to deliver all their content reliably there would be no stopping them. But at the same time it could be the thing that would break them.


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    Re: Potential New Wireless Carrier....

    I really don't see this happening



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    Re: Potential New Wireless Carrier....

    I just don't see this either. The hurdles to entry here are just huge. First off, they need to buy spectrum across much of the country. That isn't cheap. Next up, they need to build out a radio network to turn those spectrum holdings into usable coverage. For the large national carriers, you are talking tens of thousands of towers. Again, not cheap. Finally, they need to establish backhaul for all those new towers. That typically involves wireline access from cable companies or local exchange carriers. A lot of this access will be owned by companies or subsidiaries that Apple is now going to be competing with, so they aren't going to want to play nice. I guess Apple could build a national fiber network to provide their own backhaul, again, time consuming and not cheap.

    You then need to establish roaming agreements to augment coverage, again with unfriendly carriers that you are trying to throw under the bus. And you have to set up a billing system for a service completely unlike what you deal with today. You have to set up a field engineering operation, as well as a customer care and service system designed to deal with a service more than a product.

    Finally, you have to eat those massive device subsides that right now other companies are climbing over each other to eat for you. Why give that up if you don't have to?

    It makes me laugh to see somebody identified as an industry analyst or expert, and then see them turn around and predict Apple or Google to enter the market as a carrier.



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    Re: Potential New Wireless Carrier....

    Quote Originally Posted by aeroclone View Post
    It makes me laugh to see somebody identified as an industry analyst or expert, and then see them turn around and predict Apple or Google to enter the market as a carrier.
    Yeah, alot in that proposition that just doesn't make sense. As someone else mentioned, they could try buying T-Mobile or Sprint to take care of the infrastructure issue, which would burn through a wad of their cash. And then, they can burn through the rest of their cash by eating the device subsidies. The stockholders should love that...


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    Re: Potential New Wireless Carrier....

    Next up...Google Wireless cell phone service



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    Re: Potential New Wireless Carrier....

    Apple's subsidy makes iPhone a nightmare for carriers - Feb. 8, 2012

    Interesting article on how the iPhone subsidies are killing margins for the wireless carriers. Financial analysts are starting to take note. Cell rates are going up to drive up margins in order to cover the Apple subsidies. Thanks Apple!

    Also interesting that many European carriers don't subsidize iPhones, and Android phone sales dwarf iPhone sales in those markets.

    IPhone's Crutch of Subsidies - WSJ.com

    Perhaps Apple senses that financial pressures are going to make US Carriers cut back on the subsidies, which will drive customers to llower cost Android phones, and they want to be able to sell cheap iPhones via their own carrier.


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  10. #10
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    Re: Potential New Wireless Carrier....

    Quote Originally Posted by aeroclone View Post
    I just don't see this either. The hurdles to entry here are just huge. First off, they need to buy spectrum across much of the country. That isn't cheap. Next up, they need to build out a radio network to turn those spectrum holdings into usable coverage. For the large national carriers, you are talking tens of thousands of towers. Again, not cheap. Finally, they need to establish backhaul for all those new towers. That typically involves wireline access from cable companies or local exchange carriers. A lot of this access will be owned by companies or subsidiaries that Apple is now going to be competing with, so they aren't going to want to play nice. I guess Apple could build a national fiber network to provide their own backhaul, again, time consuming and not cheap.

    You then need to establish roaming agreements to augment coverage, again with unfriendly carriers that you are trying to throw under the bus. And you have to set up a billing system for a service completely unlike what you deal with today. You have to set up a field engineering operation, as well as a customer care and service system designed to deal with a service more than a product.

    Finally, you have to eat those massive device subsides that right now other companies are climbing over each other to eat for you. Why give that up if you don't have to?

    It makes me laugh to see somebody identified as an industry analyst or expert, and then see them turn around and predict Apple or Google to enter the market as a carrier.
    That's the problem. There isn't open spectrum left. The big companies are fighting over the little that's still held by smaller companies and are unloading those leases for huge amounts of money. I don't think a start-up could even find the spectrum regardless of how much money they have. The only route is to buy a nationwide company that is struggling (T-Mobile) or trying to work a deal with a major provider to rent their signal.

    Working with carriers to rent signals or re-brand service has worked in the past for companies like qwest and best buy, but with how data-centric these phones will be it would be a huge burden for even the major providers to take on. Especially considering it would be a major competitor taking away a large number of data plans already with contracts.



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