A Nationwide Wireless Apple Network? That’s About as Likely as Intel-Based Macs … Oh, Wait.
by John Paczkowski
Posted on September 10, 2007 at 3:39 PM PT
It might sound far-fetched, but Apple is reportedly considering bidding in the Federal Communications Commission’s upcoming auction of the 700 MHz wireless spectrum. Citing two anonymous sources, BusinessWeek reports that Cupertino has “studied the implications of joining the spectrum auction,” which is expected to fetch a high bid of $9 billion.
It’s an intriguing idea. With nearly $14 billion in cash, Apple can certainly afford to bid in the auction. And if it were to win, it could create a network that would free it from dependence on wireless carriers like AT&T. A network that could be used to wirelessly deliver music and videos purchased on iTunes not just to iPhones, but to iPods and Apple TVs as well. An insanely great network optimized especially for Apple services.
Sadly, running such an insanely great network would be an insanely great pain in the ass. Which is likely why Apple is said to be leaning against bidding in the auction. “My first reaction to this is why would Apple do that to their margins,” Mike McGuire, vice president of research at Gartner, told News.com. “There is a lot more to this than buying spectrum licenses. They’ll need people to manage the bidding. Then once they get the spectrum, they’ll have to acquire the expertise to do something with it. And there are regulatory issues that will have to be dealt with. So the question becomes, how much of its resources does Apple really want to devote to this?”
And would Google, whose CEO Eric Schmidt sits on Apple’s board and is also considering a bid, perhaps be willing to make up the difference?
Comments
Or how about a partnership between Apple and Google? They have enough money to buy plenty of spectrum between them, and build up infrastructure. Probably as fast or faster than Starbucks seems willing to build up their iTunes store connection in their ubiquitous coffee emporiums.
But would Apple want to be forced to sell unlocked phones? Why not? Their service will be so good in comparison they’ll sell more phones and service because it will work better.
Naysayers (Guaranteed Enderle, Thurroutt and Dvorak will bloviate endlessly on this.) will say Apple has no experience in this area. Yeah, and that’s why they will succeed. They aren’t a bunch of clue-impared suits who only understand accounting principles and not people or phones.
Serously, I think Apple won’t do it in the end. They have the iTunes store to add value to the iPod, not to make money. Which is whey they were happy to tell NBC to not let the screen door hit them on the way out. So I don’t think they have any interest in becoming a phone company.
Posted by Eric Welch at September 11th, 2007 at 9:13 am