Apple Planning MVNO, Squashing Helio?

So we know the iPhone is coming, we know it’s slim, we know that if we type the word “iPhone” again, our heads will explode, but what we don’t know is Apple’s plan for carriers. Kevin from Digg said he had knowledge that it would work on all networks. Of course, he also mucked up which technology Sprint uses, so we don’t count that as canon.

We mentioned briefly a couple months ago the idea that Apple might start up its own MVNO, like Helio or Virgin Mobile, to have more control over the total user experience than would be possible under an “unlocked” strategy.

TelecomsKorea agrees with us. In fact, it’s naming Helio as a possible casualty of such a plan, as Helio markets itself towards the same demographic as Apple: Young, hip, and with disposable income, people willing to pay for the lifestyle the brand affords.

While Helio isn’t exactly posting large numbers in the userbase column, we think it would definitely feel the pinch if Apple were to start up an iTunes-based or even .Mac-based network, as most of Helio’s features would be duplicated by Apple, and others (wireless iTunes, for example) would be introduced that couldn’t be easily matched.

At least Helio still has MySpace.

Apple’s MVNO Plans Could Affect Helio [TK]

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4 Comments so far

 
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Nick Dynice (Who am I?)

Does the recent changes to the DMCA have any affect on this?
http://www.wired.com/news/columns/0,72241-0.html?tw=rss.technology

 
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Kurt Collins (Who am I?)

I think it’s a very slim possibility that Apple will run an MVNO. When Jobs started iTunes he made sure to make it clear over and over again that Apple was a hardware company and they were only running iTunes to sell more iPods. Of course, now that iTunes has been an unmitigated success he may be changing his tune.

However there’s a difference between using tens of millions of dollars to set up the iTunes store and the hundreds of millions of dollars required to properly open up shop as an MVNO. That’s a risk I’m not sure he’s willing to make — especially given the lack of any serious traction consumers have seemingly given to existing MVNOs (ie - ESPN and others closing up shop).

No, I can’t see Apple running an MVNO. But then again stranger things have happened.

 
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Thomas (Who am I?)

Why is it only going to squash helio if they start a mvno, why not amp mobile? Not that I think apple will star an mvno, too complicated to start up and run.

Changes in DMCA? I thought the only relevent thing is allowing users to unlock cell phones. Makes no sense why that would encourage apple to becoming a mvno. If they started a mvno they would lock there phones like any other carrier, and the dmca would just state people can unlock them.

 
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Bill (Who am I?)

Maybe Apple and Helio will join forces.

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