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: http://macte.ch/BOBRB61 .

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: www.CottageIndustySolar.com . Married, with one daughter, Greg writes for intellectual property web sites and on Mac/Tech related issues.  See Greg's art web site at http://www.gregmills.com . He can be emailed at gregmills@mac.com )

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

BetterTouchTool 1.84 - Customize Multi-T...
BetterTouchTool adds many new, fully customizable gestures to the Magic Mouse, Multi-Touch MacBook trackpad, and Magic Trackpad. These gestures are customizable: Magic Mouse: Pinch in / out (zoom... Read more
Dropbox 8.4.21 - Cloud backup and synchr...
Dropbox is an application that creates a special Finder folder that automatically syncs online and between your computers. It allows you to both backup files and keep them up-to-date between systems... Read more
OmniGraffle Pro 6.6.1 - Create diagrams,...
OmniGraffle Pro helps you draw beautiful diagrams, family trees, flow charts, org charts, layouts, and (mathematically speaking) any other directed or non-directed graphs. We've had people use... Read more
OmniGraffle 6.6.1 - Create diagrams, flo...
OmniGraffle helps you draw beautiful diagrams, family trees, flow charts, org charts, layouts, and (mathematically speaking) any other directed or non-directed graphs. We've had people use Graffle to... Read more
f.lux 37.7 - Adjusts the color of your d...
f.lux makes the color of your computer's display adapt to the time of day, warm at night and like sunlight during the day. Ever notice how people texting at night have that eerie blue glow? Or wake... Read more
BBEdit 11.6.1 - Powerful text and HTML e...
BBEdit is the leading professional HTML and text editor for the Mac. Specifically crafted in response to the needs of Web authors and software developers, this award-winning product provides a... Read more
ScreenFlow 6.1 - Create screen recording...
ScreenFlow is powerful, easy-to-use screencasting software for the Mac. With ScreenFlow you can record the contents of your entire monitor while also capturing your video camera, microphone and your... Read more
Microsoft Office 2016 15.25 - Popular pr...
Microsoft Office 2016 - Unmistakably Office, designed for Mac. The new versions of Word, Excel, PowerPoint, Outlook and OneNote provide the best of both worlds for Mac users - the familiar Office... Read more
FileZilla 3.21.0 - Fast and reliable FTP...
FileZilla (ported from Windows) is a fast and reliable FTP client and server with lots of useful features and an intuitive interface. Version 3.21.0: Fixed Vulnerabilities Fixed a string format... Read more
Fantastical 2.2.5 - Create calendar even...
Fantastical 2 is the Mac calendar you'll actually enjoy using. Creating an event with Fantastical is quick, easy, and fun: Open Fantastical with a single click or keystroke Type in your event... Read more

3 best fantasy football apps to get you...
Last season didn't go the way you wanted it to in fantasy football. You were super happy following your drafts or auctions, convinced you had outsmarted everyone. You were all set to hustle on the waiver wire, work out some sweet trades, and make... | Read more »
Pokemon GO update: Take me to your leade...
The Team Leaders in Pokemon GO have had it pretty easy up until now. They show up when players reach level 5, make their cases for joining their respective teams, and that's pretty much it. Light work, as Floyd Mayweather might say. [Read more] | Read more »
Ruismaker FM (Music)
Ruismaker FM 1.0 Device: iOS Universal Category: Music Price: $4.99, Version: 1.0 (iTunes) Description: Following up on the success of Ruismaker, here's her crazy twin-sister, designed for people who want to design their own... | Read more »
Space Marshals 2 (Games)
Space Marshals 2 1.0.15 Device: iOS iPhone Category: Games Price: $5.99, Version: 1.0.15 (iTunes) Description: The sci-fi wild west adventure in outer space continues with Space Marshals 2. This tactical top-down shooter puts you in... | Read more »
Dungeon Warfare (Games)
Dungeon Warfare 1.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.0 (iTunes) Description: Dungeon Warfare is a challenging tower defense game where you become a dungeon lord to defend your dungeon against greedy... | Read more »
Solitairica (Games)
Solitairica 1.0.7 Device: iOS Universal Category: Games Price: $3.99, Version: 1.0.7 (iTunes) Description: Solitairica takes RPG combat and challenging rogue-like progression to a fresh new place—the world of solitaire! | Read more »
Bowmasters tips, tricks and hints
At least for this writer, archery was one of the more pleasant surprises of the 2016 Rio Olympics. As opposed to target shooting with guns, which was dreadfully boring, watching people shoot arrows at targets was pretty darn cool. [Read more] | Read more »
Best apps for watching live TV
The Olympics have come and gone, leaving nearly everyone in a temporary state of "What the heck am I going to watch on TV right now?" Besides old reruns of Golden Girls, but that goes without saying. [Read more] | Read more »
What is Flip Diving, and why has it take...
Move over Pokemon GO. There's a new king in town, and it's "the world's #1 cliff diving game." [Read more] | Read more »
5 places where Pokemon GO is still numbe...
In the U.S., the bloom is off the Pokemon Go rose ever so slightly. It's still doing great, sitting atop the top grossing chart as it has for some time, but it's no longer among the top 10 free apps in downloads, possibly because darn near... | Read more »

Price Scanner via MacPrices.net

Apple refurbished 13-inch MacBook Airs availa...
Apple has Certified Refurbished 2016 and 2015 13″ MacBook Airs now available starting at $849. An Apple one-year warranty is included with each MacBook, and shipping is free: - 2016 13″ 1.6GHz/8GB/... Read more
Apple refurbished iPad mini 2s available for...
Apple is offering Certified Refurbished iPad mini 2s for up to $80 off the cost of new minis. An Apple one-year warranty is included with each model, and shipping is free: - 16GB iPad mini 2 WiFi: $... Read more
Save up to $600 with Apple refurbished Mac Pr...
Apple has Certified Refurbished Mac Pros available for up to $600 off the cost of new models. An Apple one-year warranty is included with each Mac Pro, and shipping is free. The following... Read more
Mac Pros on sale for $200 off MSRP
B&H Photo has Mac Pros on sale for $200 off MSRP. Shipping is free, and B&H charges sales tax in NY only: - 3.7GHz 4-core Mac Pro: $2799, $200 off MSRP - 3.5GHz 6-core Mac Pro: $3799, $200... Read more
Will We See A 10.5″ iPad Pro in 2017? – The ‘...
A MacRumors report, cites a research note from KGI Securities analyst Ming-Chi Kuo, saying a new size iPad model is in the works. According to the highly respected Cho, who has a strong track record... Read more
IOGEAR USB-C Docking Station Transforms Lapto...
IOGEAR has announced the launch of its innovative USB-C Docking Station with Power Delivery which turns USB-C enabled laptops into desktop workstations. The new IOGEAR USB-C Docking Station features... Read more
12-inch Retina MacBooks on sale for up to $10...
Amazon has 2016 12″ Apple Retina MacBooks on sale for $100 off MSRP. Shipping is free: - 12″ 1.1GHz Space Gray Retina MacBook: $1199 $100 off MSRP - 12″ 1.1GHz Silver Retina MacBook: $1224.99 $75 off... Read more
13-inch 2.5GHz MacBook Pro (Apple refurbished...
Apple has Certified Refurbished 13″ 2.5GHz MacBook Pros available for $829, or $270 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free: - 13″ 2.5GHz MacBook Pros... Read more
21-inch iMacs on sale for up to $120 off MSRP
B&H Photo has 21″ iMacs on sale for up to $120 off MSRP including free shipping plus NY sales tax only: - 21″ 3.1GHz iMac 4K: $1379 $120 off MSRP - 21″ 2.8GHz iMac: $1199.99 $100 off MSRP - 21″ 1... Read more
Typinator 6.10 comes with 50 improvements – G...
Ergonis Software today announced release of Typinator 6.10, a new version of their text expander utility for macOS. Typinator 6.10 comes with 50 improvements, including new features, compatibility... Read more

Jobs Board

*Apple* Mobile Master - Best Buy (United Sta...
What does a Best Buy Apple Mobile Master do? At Best Buy, our mission is to leverage the unique talents and passions of our employees to inspire, delight, and enrich Read more
*Apple* Retail - Multiple Positions Akron, O...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Simply Mac *Apple* Specialist- Repair Techn...
…The Technician is a master at working with our customers to diagnose and repair Apple devices in a manner that exceeds the expectations set forth by Apple Read more
*Apple* Retail - Multiple Positions Germanto...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Professional Learning Specialist - A...
# Apple Professional Learning Specialist Job Number: 51234379 Portland, Maine, Maine, United States Posted: Aug. 18, 2016 Weekly Hours: 40.00 **Job Summary** The Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.