Steve Jobs' Vision Included Apple's Own iPhone Network (NewsFactor)

Having transformed computer interfaces, mobile phones, and mobile music players, it now appears that Apple CEO and co-founder Steve Jobs had seriously pondered creating his own Wi-Fi based network to bypass traditional carriers for the company's then-coming iPhone. The intent was nothing less than creating a network phone system for Apple.

That information comes via a recollection Monday by wireless pioneer and venture capitalist John Stanton at the Law Seminar International Event in Seattle. Stanton said that, during a considerable amount of time he spent with Jobs in the period from 2005 to 2007, the idea of creating a carrier using Wi-Fi was discussed and investigated.

'Dramatic Shift in Power'

Stanton headed the predecessor company to T-Mobile, which was called VoiceStream Wireless. By 2007, he said, Jobs decided to abandon the idea of a Wi-Fi network to support the iPhone, and instead did a deal with AT&T Wireless as the first carrier partner in the U.S. for the groundbreaking device.

Stanton, who's now head of the venture capital firm Trilogy Partnership, added that, "If I were a carrier, I'd be concerned about the dramatic shift in power that occurred," in which Apple and Google in particular are now capturing revenue, and guiding mobile product development, that formerly would have been in the realm of telecommunication carriers.

Jobs reportedly sold the iPhone to AT&T before the carrier actually saw a working device, and the deal that Apple made was groundbreaking in its terms. Apple received unprecedented revenue streams and control, including much of the customer management.

Wi-Fi and cellular frequencies both occupy the ultra-high frequency range in the radio spectrum, but Wi-Fi is unlicensed, unregulated -- and uncontrolled by the carriers.

Buy a Carrier?

There has been some speculation that Apple, with about $65 billion in cash, might now simply buy one of the carriers. Some observers have also noted that the FaceTime app is not only the central piece of user software Apple would need, but it also shows that an Apple-based service could be entirely based on data connectivity, without the need for voice service.

Peter Jarich, an analyst with industry research firm Current Analysis, said that "it's not out of the question to develop a network that's solely Wi-Fi, but it's tough." Issues include the availability of open Wi-Fi hotspots, reliability of service, and connecting with those who are on traditional cells or landlines.

But, he said, the "time could be right" to see the change toward Wi-Fi and away from cell carriers. He pointed to Republic Wireless, a recently launched company that is offering "unlimited" voice, data, and texting for $19 a month, over Wi-Fi as much as possible, and over Sprint's cellular network when necessary.

But it's not there yet. Republic only offers one phone model for use on its service, there's no international calling, and "unlimited" is mysteriously defined by that company as "reasonable" usage.

Source: http://us.rd.yahoo.com/dailynews/rss/tech/*http%3A//news.yahoo.com/s/nf/20111116/bs_nf/81028

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