Steve Jobs Wanted to Build Apple’s Own Cellular Network

Late Apple founder and chairman, Steve Jobs, had envisioned a dedicated Apple wireless network for the company’s hugely successful iPhones, similar to the unlicensed spectrum used by Wi-Fi, rather than work with traditional mobile operators.

Late Apple founder and chairman, Steve Jobs, had envisioned a dedicated Apple wireless network for the company’s hugely successful iPhones, similar to the unlicensed spectrum used by Wi-Fi, rather than work with traditional mobile operators.

In a conference speech on Monday, wireless industry pioneer John Stanton said Jobs spent close to two years leading up to the release of Apple’s first iPhone trying to figure out if it was possible to replace established mobile carriers by creating a proprietary wireless network specifically for the handset by leveraging an unused license-free spectrum band.

Stanton, who is now chairman of venture capital firm Trilogy Partners, said he met with the former Apple chief between 2005 and 2007 to discuss the creation of a new network built on the unlicensed Wi-Fi spectrum. The move would have given Apple the ability to manufacture a mobile handset as well as be in control of the service that supported the device.

[quote]Jobs wanted to replace carriers. He and I spent a lot of time talking about whether synthetically you could create a carrier using Wi-Fi spectrum. That was part of his vision. [/quote]

Jobs eventually canned the idea in 2007, signing an exclusive dealership with AT&T.

“If I were a carrier, I’d be concerned about the dramatic shift in power that occurred,” Stanton said.

Related: US raises antitrust concerns over AT&T takeover of T-Mobile

Stanton explained that companies like Apple and Google (which develops Android), sell a variety of software and services through outlets like the iTunes and App Store, retaining services and capturing revenue that would otherwise have gone to the operators.

John Lowensohn from CNET wrote,

[quote]In hindsight that original vision is still relevant, especially given Apple’s moves into spaces once occupied by carriers. With the iPhone, that ended up including the App Store, a business that had previously been something carriers controlled.

From what software was available to handling the billing, Apple took such things over with its App Store. More recently, it’s been the implementation of iMessage, a feature included in iOS5 that lets iOS users send messages to one another for free, versus using a paid messaging plan from their carrier. [/quote]

Earlier this year, Jean-Louis Gassée, former head of Apple France, suggested that Apple buy a carrier outright with its growing cash pile, in part to get around some of those hurdles.

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Related Infographic: Remembering Steve Jobs