Will Apple Become a Service Provider?

Will Apple become a service provider? As complicated a move as that might be, some think it is not "unthinkable."

Complicated and fast-evolving ecosystems often feature some amount of “jockeying” between contestants in formerly-distinct parts of the ecosystem. Google becoming a mobile operating system supplier and a handset manufacturer provide examples. Now Microsoft has become a branded supplier of tablets, potentially competing with its operating system licensees.

In prior years, we have seen any number of over-the-top application providers becoming suppliers of voice or text messaging services, voice mail or video apps, for example.

The nagging concern many mobile service providers logically have is whether one or more application or device suppliers might one day decide to become service providers in their own right. Historically, one might have argued that doing so would not make much sense.

Channel conflict is the issue. If you want all service providers to sell your devices, it might not make sense to compete with those distributors. But the ecosystem is a very complicated place these days.

In fact, it might be complicated enough that Apple might eventually decide to become a mobile virtual network operator, or perhaps even consider owning its own network, not so much for the voice revenues, but for the ability to optimize its network for support of mobile devices. It would not be an easy decision.

But if streaming video becomes important, Apple might want the same level of control over quality of experience as cable, satellite and telco TV providers already have.