Apple?s next big move will be to provide wireless
service directly to its iPad and iPhone customers,
according to veteran wireless industry strategist Whitey
Bluestein.
Bluestein told an international gathering of wireless
operators, resellers and suppliers that Apple has all of
the critical elements - the world's leading brand,
distribution through 363 Apple Stores, digital content
(music, video and apps) - which will allow it to exploit
its 250 million iTunes accounts with credit cards on
file.
He added that Apple has a patent-pending network
architecture to enter the wireless industry as a service
provider. Apple filed a patent application in October
2006, shortly before the first iPhone announcement, with
a diagram on how it would offer wireless service
directly to customers using networks of several mobile
operators. The patent application was extended in fall
2011. Bluestein said that the patent confirms that Apple
has thought through how it would offer service directly
to customers.
At a presentation at the Informa MVNO Industry Summit in
Barcelona Bluestein also said that Apple would
begin providing cellular service, data, voice and
roaming, directly to its customers, along with mobile
data plans bundled with iPads. He added that Apple would
offer iPhone customers activation, data and
international roaming plans through the iTunes Store,
plus voice, data and messaging plans directly to its
iPhone customers, on an ala carte basis as an
alternative to their current mobile operator
"The battleground is set, but Apple will be the first
mover," said Bluestein. "Google will have to scramble
because it lacks retail distribution, experience with
subscriber services and the iTunes ecosystem of content.
iTunes and the iTunes Store provide Apple with one-click
buying and customer care. Google can acquire most of
these capabilities, as it has before, but it is not a
core competency of the company."
Bluestein also predicted that Google will acquire a
back-office provider to help it get into the mobile
business.
What has been holding Apple back from becoming a
wireless provider already, according to Bluestein, are
the enormous handset subsidies paid by mobile operators
(AT&T, VZW and Sprint in the US), which amount to about
$381 for each iPhone sold today. That has been a
short-term stumbling block for Apple, but the company
has its well-known cash reserves and could seize the
initiative at any point.