Apple mulling 700MHz spectrum bid?

This isn't exactly what we had in mind when we pined after an iPhone unshackled from AT&T's network, but hey, it could work. BusinessWeek is reporting that a couple of sources have relayed that Apple is contemplating a bid in next year's FCC auction for the coveted 700MHz band, spectrum being freed by the move from analog to digital television. The auction has generated a groundswell of interest from behemoth players (Google, anyone?) thanks to its nationwide availability and the fact that it provides sufficient bandwidth for high speed services; it's not a shock, then, that Apple would want a crack at it considering its cash reserves and its recent entry into the wireless game. It pretty much goes without saying that AT&T and Apple are frenemies at best, locked in a marriage of convenience -- Apple needed a network and AT&T needed a smash hit. If the company could go it alone down the road with an even faster network all its own blanketing the States, we imagine that'd put a smile on Steve's face. The open access requirement could be a sticking point for a company as proprietary as Apple, but hey, we'll cross that bridge when we get to it; they've gotta outbid Mountain View first.

[Via Phone Scoop]

[Satish @ Sep 10th 2007 11:47AM]

Inside scoop:
MS will be the winner of auction!!
I bet.

[Wesburl @ Sep 10th 2007 12:03PM]

Inside scoop:
Apple likes Kool Aid and the 700 Mhz band. The real competitors are Google vs MS = ??

[shingongo @ Sep 10th 2007 1:49PM]

which means we would all be the losers.

[Ellianth @ Sep 10th 2007 11:55AM]

I'm gonna ask my daddy to buy me this spectrum for my birthday :D. If he says no, I'll hold my breath. I might even go all out and cause a scene in the grocery store. Read: Lie on the ground and kick and scream.

[Firley @ Sep 10th 2007 12:03PM]

I'm only commenting to register my displeasure towards engadget actually using the word 'frenemies' in a post. It's stupidiotic.

[Donald @ Sep 10th 2007 12:22PM]

Upvoting for fine sarcasm.

[Randomness @ Sep 10th 2007 12:13PM]

Ballmer buys FCC, pays cash. End of story ;)

[Alex Rrrrrrr @ Sep 10th 2007 12:18PM]

I love that word "Unshackled". A little off topic, I know. But what the hell.

[bubbageek @ Sep 10th 2007 12:33PM]

Who says they have to outbid Mountain View? There is the possibility that they could bid on the spectrum together after all.

[Fraunhofer Plug @ Sep 10th 2007 12:44PM]

Apple and Google sitting in a tree..

[Jacob Varghese @ Sep 10th 2007 12:53PM]

It would make a lot of sense for Apple to got it alone on this project. They don't need to partner up with Google unless Microsoft decides to throw in all their cash.

Cash War Chests:

Apple: 13.77 B
Google: 12.5 B
Microsoft: 21.06 B
Yahoo: 2.39B

AT&T: 2.57B
Verizon: 2.36B
Sprint: 2.42B
Qwest: 1.11B

Source: finance.yahoo.com

[Jason @ Sep 10th 2007 1:04PM]

Except no one will pay cash.

[SubGenius @ Sep 10th 2007 1:14PM]

Don't forget eBay...this would make sense considering their investment in Skype.

I would like to see an Apple/Google/Yahoo/eBay consortium controlling it.

[Wesburl @ Sep 10th 2007 3:45PM]

Theres not enough Kool Aid in the world for that consortium...

[Volite @ Sep 10th 2007 4:27PM]

What about checks?

[JJ @ Sep 10th 2007 12:58PM]

If it's to remain open access, then a company that has prided itself on releasing proprietary software and hardware shouldn't be allowed to win. I'd rather it'd go to a company that will 1.) make the best use out of it and 2.) provides and remains open access to ALL consumers.

[JSM @ Sep 10th 2007 1:04PM]

To both the original story and the comments - They are NOT bidding against each other. There are a number of blocks in the 700mhz bad up for auction. ONE of those blocks is the "open access" block. AAPL, GOOG or MS could by ANY of the available blocks and make them available as open (or "open to any of our approved products") spectrum - they do not have to compete for the one mandatory open spectrum block.

Now, the open block will likely be cheaper, due to the use limitations, so GOOG may have incentive to bid there, but AAPL at least, and maybe MS, will be looking for spectrum that they have a little more control over, so the liklihood that they will be bidding for the same 700mhz blocks is fairly low.

Couple of things to remember - NO ONE COMPANY is going to be buying all of the 700mhz spectrum. ONLY ONE of the many 700mhz blocks is encumbered by any open access restrictions, and should that fail to sell, those restrictions will be removed.

[Darnell @ Sep 10th 2007 1:42PM]

I was just going to say--I too believe that they aren't bidding against each other for the whole spectrum just "shares". You have to put into perspective how many companies uses the anolog spectrum now. Its room for everyone. It just has to make economical sense.

Unfortunately, anybody who enters this arena will have at least a couple of years before we get to see any projects that take advantage of it. And when you think about that it makes sense that Apple's contract with AT&T should be on it's death bed.

[Matt @ Sep 10th 2007 1:43PM]

I don't know if anyone has noticed this, but ole Ma Bell had been re-assembling itself. On top of that, they already have much of the needed equipment in place and therefore have an upper hand in network construction costs. Considering the depth of this classic mega-corp and the rate they are continuing to grow, I don't think anyone else has a chance.

[R1cebrner @ Sep 10th 2007 3:05PM]

Theres still possibility of Virgin too, That company has huge amounts of resources. Dont know if they would be pulling from the prepay market or to expand.

[The Reptile @ Sep 10th 2007 9:51PM]

I don't think Virgin would qualify being a foreign owned enterprise.

[Evo1216 @ Sep 10th 2007 4:11PM]

It would be interesting to see if this would affect the Starbucks iPod Touch/free WiFi agreement. Would Starbucks abandon T-Mobile then?

[lassi @ Sep 11th 2007 4:40AM]

only thing apple really needed a network for was visual voicemail, other than that they could've sold the device to be used on any network(BUT that wouldn't have been the US-model of doing mobile biz, giving users choice).