Apple Inc. AAPL is reportedly in talks with telecom operators to launch its mobile virtual network operator (MVNO) service in the U.S. and Europe. The company is also planning to launch its own Siri-based voicemail service, iCloud Voicemail.
Through an MVNO, tech companies can offer their customers network services by leasing it from existing carriers. Apple will be offering all services ranging from calls and texts to data while providing users the best available network service.
Media reports indicate that the tech giant has already started testing the service in the U.S. However, it is unlikely that the service will roll out anytime soon. While reports suggest that the company has been in talks with providers for a while, a full-scale launch can take as many as five years.
In fact, Apple had filed for a related patent back in 2006 and also launched Apple SIM last year. Apple SIM, which is compatible with only iPad Air 2 and iPad mini 3 at present, allows users to switch between networks from various carriers. Going ahead, the Apple SIM card could operate with the MVNO service.
However, prior to the MVNO launch, Apple it seems is planning to make users less dependent on network providers by launching iCloud Voicemail. Apple is leveraging its virtual personal assistant application, Siri to answer calls, which are later transcribed and sent to users as text. This will allow users to avail both the convenience of sending a voicemail and the ease of reading messages as per their preference. At present, users are dependent on network providers for getting their voicemail messages. With Apple iCloud, a user will no longer be dependent on carriers for voicemails encouraging them to switch to its MVNO service without any reservations.
Key carriers that lease their networks to MVNO service providers in the U.S. include AT&T, Inc. T, Verizon Communications Inc. VZ, Sprint Corporation and T-Mobile.
However, though Apple has the technological prowess and sufficient resources to provide a state-of-the-art MVNO service, it will still have to face competition from players like Google Inc. GOOGL, which is sizing up the market with its Project Fi (available for its Nexus 6 device in the U.S.). Nonetheless, Apple has never been bothered by competition as it seldom makes the first move in a market.
Currently, Apple carries a Zacks Rank #2 (Buy).
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