Steve_Jobs first iphone

Twenty-four hours after Business Insider claimed knowledge that Apple has been in talks to launch a mobile virtual network service (MVNO) in the United States and Europe, a company representative has refuted the claim in an official statement given to Reuters.

The company has not discussed such plans and is in fact not planning an MVNO cellular service, contrary to the reports it was planning on doing that.

“We have not discussed nor do we have any plans to launch an MVNO,” said an Apple spokeswoman in a statement to Reuters on Tuesday.

Business Insider basically said Apple would sell cellular data, voice and texts directly to consumers and simplify billing by charging their iTunes credit card on file.

Rather than own wireless spectrum or run its own network infrastructure, the company would purchase bulk access to existing network services at wholesale rates.

“Telecoms sources say Apple is looking long-term with its MVNO and could take at least five years to fully launch the service,” reads the original report.

“Apple has been in talks with telecoms companies for years over its MVNO plans, those sources say, adding that it’s an ‘open secret’ among carriers that a virtual Apple network is on the way.”

While talk of Apple becoming an MVNO has persisted for years and can be traced all the way back to the original iPhone introduction in 2007, there’s a “slight” problem: in becoming an MVNO, Apple would effectively bypass telecom operators.

But that would be wonderful, I hear you say.

Yes, but you also have to consider the undeniable fact that wireless carriers provide Apple with countless points of sale, marketing and strong distribution networks which all helps deliver iPhones to nearly every part of the globe.

Without carriers, the iPhone would be dead in the water.

By becoming an MVNO, Apple would be running a risk of alienating its most important customers—wireless carriers—and that’s precisely why Apple has now publicly denied the story and distanced itself from Business Insider’s reporting.

In fact, this is the first time the company has officially addressed the Apple MVNO rumor.

Source: Reuters

  • therealjjohnson

    Apple “shots” down?

  • Hmm..

  • Dante Arellano

    Sice when apple notice in advance to people of their coming service and products you never learn nothing people

    • Micrones

      Apple always gives an inkling, no apple products comes as a surprise to industry watchers, the watch was rumored to be in R&D months ahead of launch, same as Apple Music

  • Eikast

    Glad this is true. MVNO just sounds like a horrible idea. Apple likes to offer quality service to customers but they don’t have that power since it’s not their network that customers would be using. It completely makes sense why Google would do such a thing but not Apple.

    • Micrones

      People seems to assume that apple wants to be everywhere and doing everything, That is a failure waiting to happen.

      Apple is being rumored to be working on an electric car, now wants to be a carrier!!

    • George

      Google is combining sprint with T-Mobile and wifi hotspots, Google is winning.

      • Eikast

        T Mobile and Sprint as MVNO is not great…Sprint and T Mobile are not great as is with their actual customers, now imagine MVNO. Now a Verizon / AT&T combination would be nice. But still, service wouldn’t be in Apple’s control. Apple loves control so I don’t see MVNO happening.

  • Jonathan

    That just confirms that they’re working on…

  • @dongiuj

    “Without carriers, the iPhone would be dead in the water.” And now that carriers have given apple the wealth it has, Apple could open up its own carrier service (if it could provide a decent package and coverage) maybe starting a price war on services.
    Once up and running all apple would have to do is take its products away from other carriers (future iPhones and cellular iPads available only through apple carrier) then bob’s your uncle, thanks to all the iPhone/Apple fanatics/users Apple has now cornered yet another market. Next stop? WORLD DOMINATION!

  • Mark S

    This is the first thing Apple should do if this is true. They’re in sensitive negotiations they don’t want people flipping out and screwing up what could be. I’d do the same thing if I was Apple. Deny. Then it’ll happen a year later or something.