You would think that the late Steve Jobs would have been happy with the various mobile carriers, considering how much money they have made for Apple selling various versions of the iPhone over the last four years.
According to John Stanton, who spent a fair amount of time with Steve Jobs between 2005 and 2007, Jobs wanted to replace the mobile carriers, and had the idea of creating a synthetic carrier using WiFi.
Jobs apparently gave up on the idea in 2007, the same year that Apple launched the original iPhone, and considering that Sprint recently agreed to a 15.5 billion four-year deal with Apple to sell the iPhone, we suspect he made the right choice.
The Vision of a WiFi-Based Carrier
Steve Jobs was known for his innovative thinking and his desire to disrupt existing industries. His idea of creating a synthetic carrier using WiFi was no different. The concept was to bypass traditional mobile carriers entirely, allowing iPhone users to make calls and access the internet through a network of WiFi hotspots. This would have been a revolutionary shift in the telecommunications industry, potentially reducing costs for consumers and giving Apple more control over the user experience.
However, the technology and infrastructure required to support such a network were not as advanced in 2007 as they are today. WiFi coverage was not as ubiquitous, and the reliability of WiFi connections was not on par with cellular networks. These challenges likely contributed to Jobs abandoning the idea.
Impact on the Telecommunications Industry
Had Jobs pursued the WiFi-based carrier concept, it could have significantly impacted the telecommunications industry. Traditional carriers like AT&T, Verizon, and Sprint might have faced substantial competition from a new player that could offer lower prices and potentially better service. This competition could have driven innovation and improvements in the industry, benefiting consumers.
Moreover, the idea of a WiFi-based carrier is not entirely dead. In recent years, companies like Google with its Project Fi (now Google Fi) have explored similar concepts. Google Fi uses a combination of cellular networks and WiFi to provide coverage, switching seamlessly between the two to offer the best possible connection. This approach has shown that the idea of a synthetic carrier is feasible, even if it wasn’t practical in 2007.
Additionally, the rise of 5G technology is blurring the lines between traditional cellular networks and WiFi. 5G promises faster speeds and lower latency, making it a viable alternative to WiFi in many scenarios. As these technologies continue to evolve, the vision that Jobs had may become more achievable.
Apple’s Relationship with Carriers
Despite abandoning the WiFi carrier idea, Apple’s relationship with traditional carriers has been highly lucrative. The iPhone’s success has driven significant revenue for both Apple and the carriers that sell the device. For example, Sprint’s 15.5 billion dollar deal with Apple to sell the iPhone highlights the strong demand for the device and the willingness of carriers to invest heavily in it.
Apple has also leveraged its market power to negotiate favorable terms with carriers. The company has often dictated the terms of its agreements, ensuring that it maintains control over the user experience and receives a significant share of the revenue. This approach has allowed Apple to continue innovating and delivering high-quality products to its customers.
In conclusion, while Steve Jobs’ idea of a WiFi-based carrier was ahead of its time and ultimately abandoned, it highlights his visionary thinking and desire to disrupt established industries. The telecommunications landscape has evolved significantly since 2007, and the concept of a synthetic carrier remains relevant today. As technology continues to advance, we may yet see a future where WiFi and cellular networks converge, fulfilling Jobs’ vision in a new form.
Source Computer World, Gizmodo
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