Apple Inc may bid for the rights to a wireless spectrum auctioned by the Federal Communications Commission (FCC), a risky but intriguing move that would help carry the consumer electronics company into the telecommunications realm.
Citing unnamed sources, a BusinessWeek article on Monday said Apple CEO Steve Jobs has "studied the implications" of bidding on the spectrum, which analog TV broadcasters will return to the government in 2009 as they switch to digital television.
Analysts have speculated wildly on other possible bidders, including Silicon Valley neighbors Google Inc and eBay Inc.
An Apple spokeswoman declined to comment.
The auction -- which the FCC says will take place in January and could raise as much as US$15 billion -- will determine rights to a 700-megahertz wireless network with faster Internet access than cellular or Wi-Fi networks offer.
The FCC's "open access" provision requires the network operators that win the auction to allow customers to use whatever phone and software they want on about one-third of the spectrum.
That makes the spectrum particularly appealing to companies that do not already operate their own networks and therefore would not lose recurring revenue from monthly service agreements with existing customers.
If Apple bid and won, it could offer service on its iPhone, which currently runs exclusively on AT&T's network and requires a two-year contract for US$60 per month. Apple could change the terms or even give free access to a network.
But experts described an Apple bid as unlikely. Apple -- which debuted the iPhone in June to mixed reviews -- would be taking on too much, too soon, they said.
"The wireless carriers today are doing great, but they've been in business 25 years, merged and consolidated, and understand all the complications," telecom industry analyst Jeff Kagan said. "Apple could come out with an announcement that blows me away, but I'd be surprised."
Kevin Burden, a senior manager at telecommunications research firm Telephia Inc, said dozens of companies are eyeing the spectrum. BlackBerry maker Research In Motion Ltd, DirecTV Group Inc and other technology companies may submit the minimum US$4.6 billion bid.
"Some guy named Fred could come along and create Fred's Network for all we know," Burden said. "It's loosening up the stranglehold that the carriers have had on our dollars -- it's fun to watch. But anything could happen."
To many, Tatu City on the outskirts of Nairobi looks like a success. The first city entirely built by a private company to be operational in east Africa, with about 25,000 people living and working there, it accounts for about two-thirds of all foreign investment in Kenya. Its low-tax status has attracted more than 100 businesses including Heineken, coffee brand Dormans, and the biggest call-center and cold-chain transport firms in the region. However, to some local politicians, Tatu City has looked more like a target for extortion. A parade of governors have demanded land worth millions of dollars in exchange
An Indonesian animated movie is smashing regional box office records and could be set for wider success as it prepares to open beyond the Southeast Asian archipelago’s silver screens. Jumbo — a film based on the adventures of main character, Don, a large orphaned Indonesian boy facing bullying at school — last month became the highest-grossing Southeast Asian animated film, raking in more than US$8 million. Released at the end of March to coincide with the Eid holidays after the Islamic fasting month of Ramadan, the movie has hit 8 million ticket sales, the third-highest in Indonesian cinema history, Film
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue jumped 48 percent last month, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect. The main chipmaker for Apple Inc and Nvidia Corp reported monthly sales of NT$349.6 billion (US$11.6 billion). That compares with the average analysts’ estimate for a 38 percent rise in second-quarter revenue. US President Donald Trump’s trade war is prompting economists to retool GDP forecasts worldwide, casting doubt over the outlook for everything from iPhone demand to computing and datacenter construction. However, TSMC — a barometer for global tech spending given its central role in the
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in server chips, expects revenue to decline this year due to sagging demand for 5-nanometer artificial intelligence (AI) chips from a North America-based major customer, a company executive said yesterday. That would be the first contraction in revenue for Alchip as it has been enjoying strong revenue growth over the past few years, benefiting from cloud-service providers’ moves to reduce dependence on Nvidia Corp’s expensive AI chips by building their own AI accelerator by outsourcing chip design. The 5-nanometer chip was supposed to be a new growth engine as the lifecycle
RSS