While reports suggest that the company has been in talks with providers for a while, a full-scale launch can take as many as five years. The carriers purchase large numbers of mobile telephones from Apple, and then resell them to clients who signal lengthy-time period contracts, typically at a reduction.
Yesterday, the Internet was aflutter with a tantalizing report claiming that Apple was actively exploring becoming an MVNO. Such a tool would play neatly into an Apple MVNO, cutting out the need for consumers to access their voicemails via their network and allowing Apple to control the entire smartphone ecosystem.
An MVNO works as Apple leases space from mobile networks and offer it to their customers directly. Furthermore, it will be billed on carrier billing; which in turn means once an individual signs up for the service, they will have to make payments through carrier billing after the one year trial period ends.
There have been rumours about an Apple MVNO for years.
It’s reportedly working on deals to begin tests in Europe, too, meaning Apple’s service may piggyback on multiple carriers and switch customers between them for better service. The telecoms companies auction capacity to Apple so it can run the service. Instead of paying your current carrier for service each month, you would pay Apple. In April, Google announced Project Fi, a partnership with Sprint and T-Mobile to bring a similar service to users of the Nexus 6. However, the future could see SIM cards as part of an Apple MVNO targeting iPhones.
The MVNO would use Apple SIM – the embedded digital SIM card technology included in the iPad Air 2 and iPad Mini 3 – to switch between different networks depending on which is the strongest.
