Apple denies reported plans for MVNO

Cupertino says it has ‘not discussed’ stepping into telecoms services

Tags: Apple IncorporatedUSA
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Apple denies reported plans for MVNO
By  Stephen McBride Published  August 5, 2015

Apple has denied that it plans to set up a mobile virtual network operator (MVNO) service in the US, Reuters reported.

Earlier this week, Business Insider claimed the iPhone maker was in the midst of MVNO tests that would allow the company to rent network capacity from telecoms carriers and sell phone and data plans directly to consumers.

"We have not discussed nor do we have any plans to launch an MVNO," Apple said in a statement yesterday.

The handset-subsidy system has long been a key component of smartphone-makers' to-market strategies. The vendor sells devices in bulk to telecoms providers who sell them on to consumers at considerable discounts on their retail price, in return for the buyer signing a long-term contract with the provider. Any attempt by a device vendor to sell telecoms services directly would be likely to enrage carriers.

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