Greg's bite: Apple, the new cell phone company?
TweetFollow Us on Twitter

Greg's bite: Apple, the new cell phone company?

Apple's Tony Fadell is named as the inventor of a novel method of using various existing cell phone company's excess capacity cobbled together to create a new Apple branded virtual cell phone network.  

The concept is that as Apple's newest iPhones and coming iPads are now able to operate on all cell phone networks around the world, buying excess network capacity in large blocks makes sense. Then Apple could resell that network access to consumers at retail prices per minute and pocket the difference. Some predicted Apple would buy an existing cellular network to get into the cellular business. That won't happen, but this new concept just might work.

Think of this as an extension of the digital download concept Apple is working on cornering with it's new data centers. This can all be done using the newly patented Apple technology without building even one cell phone tower, anywhere.  The patent was issued yesterday and is US patent #7,885,654. I have provide a link near the end of this article that will open a browser page displaying the patent.

This neat trick (which the new Verizon iPhone can now do) creates the technical possibility that Apple could do an end run around the existing carriers and open a new Apple Branded Cell Phone Network. This business model is called a MVNO or a Mobile Virtual Network Operator system. This virtual cellphone network concept is already used by Cricket, for example.  

What makes the new Apple patent different is that Cricket contracts just with Sprint and a few other smaller CDMA networks to support their brand of phones, while the Apple concept is to buy minutes on any flavor of cell phone technology with multiple carriers and use a network controller system to mix and match service from any local participating network, as needed when you make a call, text or use data.  

The retail cell phone account would be held at Apple and cellular services charged to your iTunes account. The carriers would be made into dumb wireless data pipes, that just sell bulk network time to Apple for resale to consumers.  They wouldn't even know who is using their networks.  The system might even use Wi-Fi and Apple's Internet network, when available, instead of wireless cellular networks. Who cares what "pipe" you use, as long as the call goes through and sounds good?

While most people imagine cell phone towers and the backbone networks that control them as always being overcrowded, resulting in the famous AT&T dropped cell phone call experience, the truth is that there is a normally a tremendous untapped capacity there. Most cell towers are running with only a nominal amount of activity most of the time, only reaching peek usage part of the time. This is why most carriers offer nighttime discounts for calls between certain hours or on weekends. That capacity is going to waste otherwise, so selling it cheaper is better than completely wasting it. 

The notion is that Apple could announce that they are willing to purchase, say 1,000,000 minute blocks of excess network time on any and all cellular networks. They would take the lowest bid per minute in every market. This is despite the natural reluctance of AT&T, Verizon, T-Moble and Sprint to not like the idea of Apple competing with them on their own networks.  

The notion of selling excess capacity in bulk for a giant amount of money would "talk to them" in the Steve Jobs sort of tone.  This is similar to the situation where cable TV companies allow other companies to use their networks, for a negotiated price. The FCC pushes this concept by its rules.

This basic concept has already gotten a crisp "over our dead body" response from European cell carriers who got wind of the concept, a while back.  While the knee jerk reaction is "drop dead Apple," the reality is that if competitors underbid the asking price for selling excess network capacity, that would put the holdout networks at a serious disadvantage economically.  

Something for excess network capacity beats nothing at all. The subject patent is found at this link: .

Apple has both the guts and power to bring the networks to "heel! bad dog." If this were to be brought to practice, Apple could sell you the iPhone and also provide network service at competitive rates. Excess network capacity can be purchased for very low rates per minute, if done in a competitive bidding process.  

With a big gun like Apple doling out the giant chunks of money, any cell phone network that refuses to sell excess minutes to Apple will be the loser.  All the carriers know that network minutes unsold amount to a major waste of their potential income. Business is about income, in any language and culture

That's another Greg's bite for today.

(Greg Mills is currently a graphic and Faux Wall Artist in Kansas City.  Formerly a new product R&D man for the paint sundry market, he holds 11 US patents. Greg is an Extra Class Ham Radio Operator, AB6SF,  iOS developer and web site designer.  He's also working on a solar energy startup using a patent pending process for turning waste dual pane glass window units into thermal solar panels used to heat water see: . Married, with one daughter, Greg writes for intellectual property web sites and on Mac/Tech related issues.  See Greg's art web site at . He can be emailed at )


Community Search:
MacTech Search:

Software Updates via MacUpdate

AirPort Utility 6.3.6 - Set up and manag...
Note: Most recent release available only within OS X 10.11 El Capitan update. Use AirPort Utility to set up and manage your Wi-Fi network and AirPort base stations, including AirPort Express, AirPort... Read more
Quicksilver 1.3.1 - Application launcher...
Quicksilver is a light, fast and free Mac application that gives you the power to control your Mac with keystrokes alone. Quicksilver allows you to find what you need quickly and easily, then act... Read more
Tidy Up (Five Users) 4.1.5 - Find duplic...
Tidy Up is a complete duplicate finder and disk-tidiness utility. With Tidy Up you can search for duplicate files and packages by the owner application, content, type, creator, extension, time... Read more
Mellel 3.4.3 - The word processor of cho...
Mellel is the leading word processor for OS X and has been widely considered the industry standard since its inception. Mellel focuses on writers and scholars for technical writing and multilingual... Read more
Skype - Voice-over-internet p...
Skype allows you to talk to friends, family and co-workers across the Internet without the inconvenience of long distance telephone charges. Using peer-to-peer data transmission technology, Skype... Read more
Bookends 12.6.0 - Reference management a...
Bookends is a full-featured bibliography/reference and information-management system for students and professionals. Access the power of Bookends directly from Mellel, Nisus Writer Pro, or MS Word (... Read more
Apple iBooks Author 2.4 - Create and pub...
Apple iBooks Author helps you create and publish amazing Multi-Touch books for iPad. Now anyone can create stunning iBooks textbooks, cookbooks, history books, picture books, and more for iPad. All... Read more
Web Snapper 3.3.9 - Capture entire Web p...
Web Snapper lets you capture Web pages exactly as they appear in your browser. You can send them to a file as images or vector-based, multi-page PDFs. It captures the whole Web page - eliminating the... Read more
Tunnelblick 3.6beta10 - GUI for OpenVPN...
Tunnelblick is a free, open source graphic user interface for OpenVPN on OS X. It provides easy control of OpenVPN client and/or server connections. It comes as a ready-to-use application with all... Read more
EtreCheck 2.5.1 - For troubleshooting yo...
EtreCheck is a simple little app to display the important details of your system configuration and allow you to copy that information to the Clipboard. It is meant to be used with Apple Support... Read more

Camel Up (Games)
Camel Up 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: | Read more »
The Martian: Bring Him Home (Games)
The Martian: Bring Him Home 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Based on the best selling novel and critically acclaimed film, THE MARTIAN tells the story of Astronaut Mark... | Read more »
This Week at 148Apps: September 21-30, 2...
Leap Into Fall With 148Apps How do you know what apps are worth your time and money? Just look to the review team at 148Apps. We sort through the chaos and find the apps you're looking for. The ones we love become Editor’s Choice, standing out above... | Read more »
Tweetbot 4 for Twitter (Social Networki...
Tweetbot 4 for Twitter 4.0 Device: iOS Universal Category: Social Networking Price: $4.99, Version: 4.0 (iTunes) Description: *** 50% off for a limited time. *** | Read more »
Mori (Games)
Mori 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Stop, rewind and unwind with Mori. Time is always running, take a moment to take control. Mori is an action puzzle game about infinitely... | Read more »
100 Years' War (Games)
100 Years' War 1.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.0 (iTunes) Description: | Read more »
Tower in the Sky (Games)
Tower in the Sky 0.0.60 Device: iOS Universal Category: Games Price: $1.99, Version: 0.0.60 (iTunes) Description: | Read more »
hocus. (Games)
hocus. 1.0.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0.0 (iTunes) Description: New, polished, mind-bending, minimal puzzle game with dozens of levels and extra-ordinary design Features:- Beautifully crafted... | Read more »
Mos Speedrun 2 (Games)
Mos Speedrun 2 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Mos is back, in her biggest and most exciting adventure ever! Wall-jump to victory through 30 mysterious, action packed levels... | Read more »
3D Touch could be a game-changer, but it...
Were you one of the lucky/financially secure enough ones to buy a new iPhone 6s or iPhone 6s Plus over the weekend? Yup, me too (I’m not convinced I was either of those two things, but let’s go with lucky for now), so I thought I’d delve into just... | Read more »

Price Scanner via

Bare Bones Software Releases TextWrangler 5.0...
Bare Bones Software has announced the release and immediate availability of TextWrangler 5.0, a major upgrade to its free, high performance, general purpose text editor for Mac OS X. Built on a new,... Read more
Apple refurbished iPad Air 2s available for u...
Apple has Certified Refurbished iPad Air 2s available for up to $140 off the price of new models. Apple’s one-year warranty is included with each model, and shipping is free: - 128GB Wi-Fi iPad Air 2... Read more
Save up to $100 on Mac AppleCare Protection P...
Adorama has 3-Year AppleCare Warranties on sale for up to $100 off MSRP including free shipping plus NY & NJ sales tax only: - Mac Laptops 15″ and Above: $249 $100 off MSRP - Mac Laptops 13″ and... Read more
Updated Mac Price Trackers
We’ve updated our Mac Price Trackers with the latest information on prices, bundles, and availability on systems from Apple’s authorized internet/catalog resellers: - 15″ MacBook Pros - 13″ MacBook... Read more
27-inch 3.5GHz 5K iMac on sale for $81 off MS...
Adorama has the 27″ 3.5GHz 5K iMac on sale for $2218.99, $81 off MSRP, including a free copy of Apple’s 3-Year AppleCare Protection Plan, plus a free external DVD/CD drive, and a copy of Corel... Read more
12-inch MacBooks in stock for up to $120 off,...
Adorama has 12″ Retina MacBooks in stock for up to $120 off MSRP including free shipping plus NY & NJ sales tax only. For a limited time, Adorama will include a free Apple USB-C to USB Adapter,... Read more
EasyDocScan Turns your iPhone or iPad into a...
Note-Ify Apps has announced the release and immediate availability of EasyDocScan 1.0, their new business app developed for iPhone, iPad and iPod touch devices. EasyDocScan is a simple application... Read more
15-inch 2.2GHz Retina MacBook Pro on sale for... has the 15″ 2.2GHz Retina MacBook Pro on sale for $1799 including free shipping. Their price is $200 off MSRP, and it’s the lowest price available for this model (except for Apple’s $1699... Read more
2.8GHz Mac mini available for $988, includes...
Adorama has the 2.8GHz Mac mini available for $988, $11 off MSRP, including a free copy of Apple’s 3-Year AppleCare Protection Plan. Shipping is free, and Adorama charges sales tax in NY & NJ... Read more
iPhone 6s and 6s Plus Feature Improved Durabi...
Upgraded components in the new iPhone 6s Plus cost $16 more than the components in the earlier iPhone 6 Plus according to a preliminary estimate from IHS Inc. The bill of materials (BOM) for an... Read more

Jobs Board

Senior Payments Security Manager - *Apple*...
**Job Summary** Apple , Inc. is looking for a highly motivated, innovative and hands-on senior payments security manager to join the Apple Pay security team. You will Read more
*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* Site Security Manager - Apple (Unite...
**Job Summary** The Site Security Manager is a high-profile security position at Apple . The Site Manager is the face of Apple Global Security (GS) and primary point Read more
*Apple* Fulfillment Operations Execution Ana...
**Job Summary** The AMR Apple Fulfillment Operations Team is seeking a talented team player to drive the Apple Online Store (AOS) fulfillment performance to ensure a Read more
*Apple* Distinguished Educator (ADE) Communi...
**Job Summary** Apple is seeking candidates for a new position on the Apple Distinguished Educator (ADE) Program team as ADE Community Support Manager. Join a team Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.