I just had a bad dream last night. Well, it was a bad dream at first then it became a really good one when I started admiring Apple again for their long-term vision.
Some rumors are traveling on the web about Apple considering participating in the government’s auction of the 700-MHz spectrum. While the idea seems foolish at first because Apple is a computer company, I thought, “It’s not true anymore with iTunes and the iPod”. I would consider Apple more like a Technology-related company and telecommunication are based on technologies. The problem is that telecom is really different from computers. Or so they are, right now!
According to Steve Jobs
If we believe what Richard Koman is saying in this article. “Steve Jobs is no fan of wireless carriers” and also “[while] Apple is leaning against the idea [of buying the spectrum], Jobs apparently has been giving the possibility serious consideration.” Then I thought, is it possible to run a Wi-Fi network over this spectrum? According to the article, it is. “both the iPhone and the iPod touch could run on the 700-MHz spectrum” The iPod Touch only have the Wi-Fi, so if it’s possible, then Steve Jobs said: “[..] Wi-Fi is far faster than the 3G networks.” This is no surprise and not a big news. But running a phone completely over Wi-Fi would be awesome and everything around wi-fi would then explode, like City-wide Wi-Fi network.
Still with me so far? because the best part comes here.
For the last 5 years or so, the big news in telecom was VOIP. It is the future because it is lowering the cost of telecom, or so they say! 
The problem with current telecom is their differences with the Internet. For example, if you want to call your friend in L.A and you are based in London, UK. VOIP must pass the information from a regular PBX system to the PSTN then to the Internet then pass it back to PSTN and PBX, lots of conversions! What if the Internet was becoming the place for all voice/data transfers. In 20 years, with P2P, anybody could start a “phone” service and relay VOIP. Also, most big ISP are also telecom companies… why manage both infrastructure when you can have only one?
Apple and Google
Apple has 13$B in cash right now, which makes them capable of buying the spectrum really easily. They would even have a couple of B$ to build the network itself. But why would they, right? It will take them too long to build it anyway and it’s not their cup of tea. Apple and Google have a partnership going on and I found it really interesting at first but since Google’s CEO Eric Schmidt joined Apple’s board, I was always wondering what the heck is he doing there? OK, Google/Apple built a Google Maps version for the iPhone. Sweet thing, but that’s it? Now, we know Google has been looking at the cellphone business for a couple of years now and I know also that they have most of the black-fiber market in the US. They are building an impressive infrastructure of datacenters in the US which I think may be used to lower the cost of bandwidth to ISPs around the country at the beginning but it could also be used to do VOIP. That’s the kind of partnership I was talking about. (A)iPhone<->(G)Network
Why Apple would put 9B$ of its own money in such a spectrum if they know that Google is also interested in it. Why not share it with our good partners, right?
OK, let’s dream a bit more. This spectrum must be OPEN. Which means any devices that wants to use it, could use it in theory. Isn’t what the Internet is all about anyway? By combining the Internet and the old telecom system together, we fix a century-long problem. Furthermore, I know that a (at least one) company located in Canada is selling modules for Telecom companies which is IP-based. This basically means, everything is manageable from a Support Center, like a web-based software. So no more guy in the tree around your building when you call your Phone Company and it takes a few seconds before being effective.
Dream goes on about voicemail
Visual voicemail is the most interesting feature (for me) on the iPhone. Apple has an exclusive contract with AT&T, but in Europe, Apple is in talk with many carriers. (T-Mobile of Germany, Orange of France and O2 in the UK) The most interesting bit is that each companies will have that feature built in their systems somewhere in their network but not widespread. While I am pretty sure the iPhone will stay locked for a while, I think it will be un-locked as soon as the companies will know how to implement this feature everywhere else making the iPhone full-featured on every market with many carriers. Apple will then probably license the feature to other cellphone-makers if it’s patented or own by Apple.
While I read somewhere that Google was also building a cellphone on their own. I think some news/rumors going around about both companies are somewhat just to confuse us or messed around for the sake of seeking public reaction. Apple is doing great right now and for the last decade it has been one of the most successful company and I think Apple will keep this position for a while because if the latter story becomes real, all iPhone and iPod touch sold starting June 29, 2007 could be upgradeable to this new VOIP network just by releasing a new software update. Having a cellphone upgradeable like that is just one of the best thing that could have happen now. I was suspicious about Apple being too involved with the Music and Movie industry but I guess Steve Jobs likes diversity as well. Steve: Let’s go fix all Telecom issues!
This dream will probably take 5 to 10 years before being a complete reality. Let’s see what happens.
