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

Together 3.7 - Store and organize all of...
Together helps you organize your Mac, giving you the ability to store, edit and preview your files in a single clean, uncluttered interface. Features Smart storage. With simple drag-and-drop... Read more
EtreCheck 3.1.4 - For troubleshooting yo...
EtreCheck is an app that displays 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 Communities to... Read more
Postbox 5.0.9 - Powerful and flexible em...
Postbox is a new email application that helps you organize your work life and get stuff done. It has all the elegance and simplicity of Apple Mail, but with more power and flexibility to manage even... Read more
DiskCatalogMaker 6.5.16 - Catalog your d...
DiskCatalogMaker is a simple disk management tool which catalogs disks. Simple, light-weight, and fast. Finder-like intuitive look and feel. Super-fast search algorithm. Can compress catalog data... Read more
TrailRunner 3.8.827 - Route planning for...
TrailRunner is the perfect companion for runners, bikers, hikers, and all people wandering under the sky. Plan routes on a geographical map. Import GPS or workout recordings and journalize your... Read more
VueScan 9.5.61 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more
Postbox 5.0.9 - Powerful and flexible em...
Postbox is a new email application that helps you organize your work life and get stuff done. It has all the elegance and simplicity of Apple Mail, but with more power and flexibility to manage even... Read more
VueScan 9.5.61 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more
DiskCatalogMaker 6.5.16 - Catalog your d...
DiskCatalogMaker is a simple disk management tool which catalogs disks. Simple, light-weight, and fast. Finder-like intuitive look and feel. Super-fast search algorithm. Can compress catalog data... Read more
TrailRunner 3.8.827 - Route planning for...
TrailRunner is the perfect companion for runners, bikers, hikers, and all people wandering under the sky. Plan routes on a geographical map. Import GPS or workout recordings and journalize your... Read more

Latest Forum Discussions

See All

Amateur Surgeon 4 Guide: Become the worl...
It's time to wield your trusty pizza cutter again, as Amateur Surgeon has returned with a whole fresh set of challenges (and some old, familiar ones, too). Starting anew isn't easy, especially when all you have at your disposal is a lighter, the... | Read more »
Le Parker: Sous Chef Extraordinaire (Ga...
Le Parker: Sous Chef Extraordinaire 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: | Read more »
Telltale Games really is working on a Gu...
Telltale Games' next episodic adventure is indeed Guardians of the Galaxy. A document tied to the voice actors strike suggested that the project was in the work, but now we have direct confirmation following an announcement at the Game Awards that... | Read more »
Amateur Surgeon returns to iOS and Andro...
Amateur Surgeon and its two sequels disappeared from the App Store some time and it was sad days for all. But now, just in time for the holidays, the Adult Swim favorite makes its joyous return in the shape of Amateur Surgeon 4, a remake with... | Read more »
The best board games on mobile
Sometimes you need to ditch all of the high speed, high action games in favor of something a little more traditional. If you don't feel like parting ways from your mobile device, though, there are still plenty of ways to get that old-school fix.... | Read more »
The best Facebook Messenger Instant Game...
Facebook's new Instant Games is now here, meaning you can play games with your friends directly via Facebook. It's a fun new way to connect with friends, of course, but it's also proving to be a solid gaming experience in its own right, with a... | Read more »
You can now play game's on Facebook...
Facebook launched its new Instant Games platform in an exciting new attempt to engage its user base. As a result, you can now play a number of different games directly through Facebook Messenger. All of these games run with HTML5, meaning you play... | Read more »
Apollo Justice Ace Attorney (Games)
Apollo Justice Ace Attorney 1.00.00 Device: iOS Universal Category: Games Price: $.99, Version: 1.00.00 (iTunes) Description: Court Is Back In Session Star as rookie defense attorney, Apollo Justice, as he visits crime scenes,... | Read more »
KORG iWAVESTATION (Music)
KORG iWAVESTATION 1.0 Device: iOS Universal Category: Music Price: $19.99, Version: 1.0 (iTunes) Description: A revolutionary new world of sound.The Wave Sequence Synthesizer for iPad - KORG iWAVESTATION | Read more »
Don't Grind Guide: Tips for becomin...
Don’t Grind is a surprising, derpy little one touch game with fun hand-drawn graphics. The goal is simple -- get the high score without being chopped to bits. That can be tough when you’re not used to the game, and that’s compounded by the fact... | Read more »

Price Scanner via MacPrices.net

Monday roundup of Holiday Mac sales: Up to $3...
Take up to $300 off MSRP on the price of a new Apple Mac at B&H Photo today as part of their Holiday sale. Shipping is free, and B&H charges NY sales tax only. Touch Bar MacBook Pros are in... Read more
12-inch WiFi Apple iPad Pros on sale for up t...
B&H Photo has 12″ WiFi Apple iPad Pros on sale for up to $50 off MSRP, each including free shipping. B&H charges sales tax in NY only: - 12″ Space Gray 32GB WiFi iPad Pro: $749 $50 off MSRP... Read more
9-inch Apple WiFi iPad Pros on sale for $20-$...
B&H Photo has 9.7″ Apple WiFi iPad Pros on sale for $20-$50 off MSRP, each including free shipping. B&H charges sales tax in NY only: - 9″ Space Gray 256GB WiFi iPad Pro: $779.95 $20 off MSRP... Read more
Holiday sale: Apple MacBook Airs available fo...
B&H Photo has 13″ MacBook Airs on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 1.6GHz/128GB MacBook Air (MMGF2LL/A): $899 $100 off MSRP - 13″ 1.6GHz/... Read more
13-inch Silver Touch Bar MacBook Pro in stock...
Amazon has the new 2016 13″ 2.9GHz/256GB Silver Touch Bar MacBook Pro (MLVP2LL/A) in stock today and on sale for $1749 including free shipping. That’s $50 off MSRP, and it’s the lowest price... Read more
Parallels Toolbox 1.3 for Mac Offers 25 Singl...
Parallels has launched Parallels Toolbox 1.3 for Mac, an upgrade that adds five new utilities to the stand-alone application which was released in August and is available exclusively online at http... Read more
OWC Mercury Elite Pro Dual mini Ultra-Portabl...
OWC has introduced the new OWC Mercury Elite Pro Dual mini, a powerful yet ultra-portable dual-drive RAID solution. The new Mercury Elite Pro Dual mini packs phenomenal performance into a small... Read more
Clearance 13-inch Retina MacBook Pros availab...
B&H Photo has clearance 2015 13″ Retina Apple MacBook Pros available for up to $200 off original MSRP. Shipping is free, and B&H charges NY tax only: - 13″ 2.7GHz/128GB Retina MacBook Pro: $... Read more
Roundup of 2016 13-inch 2.0GHz MacBook Pro sa...
B&H has the non-Touch Bar 13″ MacBook Pros in stock today for $50-$100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.0GHz MacBook Pro Space Gray (MLL42LL/A): $1449 $... Read more
New 13-inch 2.0GHz Space Gray MacBook Pro in...
Adorama has the new 13″ 2.0GHz Space Gray MacBook Pro (non-Touch Bar, MLL42LL/A) in stock for $1499 including a free 3-year AppleCare Protection Plan. Shipping is free, and Adorama charges sales tax... Read more

Jobs Board

Lead *Apple* Solutions Consultant - Apple (...
# Lead Apple Solutions Consultant Job Number: 53586123 Pittsburgh, Pennsylvania, United States Posted: Nov. 28, 2016 Weekly Hours: 40.00 **Job Summary** The Lead ASC Read more
*Apple* Retail - Multiple Positions- Plano,...
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* Retail - Multiple Positions- Kansas...
Job Description:SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions- Chicago...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Hardware Design Validation Engineer - *Apple...
The Apple Watch team is looking for a Hardware Design Validation Engineer. This person will be part of the Apple Watch hardware team with responsibilities for Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.