Apple Inc denies MVNO plans

Apple Inc, the world's most profitable mobile phone maker, said it was not working on a plan to market communications services directly to consumers and bypass the telecom companies on which it had so long relied for selling its products.

According to a report in Business Insider on Monday, Apple was testing a so-called mobile virtual network operator (MVNO) service in the US, which would involve renting capacity from one or more network operators to sign up customers to its own phone and data plans.

The mobile phone maker was also in discussion with European operators about such an arrangement, according to the website.

However, Apple denied the move. ''We have not discussed nor do we have any plans to launch an MVNO,'' said an Apple spokeswoman in a statement yesterday.

Since it launched the first iPhone in 2007, carriers including AT&T Inc, Deutsche Telekom AG and China Mobile Ltd had played a key role in ensuring the success of Apple's mobile phone business.

The carriers bought huge numbers of mobile phones from Apple, then resold them to customers on long-term contracts, often at a discount. Any move that would bypass carriers would therefore be risky for Apple.

The company reported recently that it sold 48 million iPhones in the quarter through June, which brought $31.4 billion in revenue, or 63 per cent of its total sales.

In a bid to ensure maximum coverage to its customers, Apple had moved away from an early focus on exclusive deals with single operators in key markets, to work with as many operators as possible.

Meanwhile, Apple was apparently testing the waters to buy cellular phone services directly from major carriers in the US and Europe so it could offer mobile services to its own customers without a middleman, The Consumerist reported.

The practice of buying mobile services from large carriers and reselling them was not new but it would be the first time that Apple did so, according a story in The Consumerist, carried in the 3 August issue.

The move would give Apple a new revenue stream for buyers of its iPhones, MacBooks, iPads and other mobile devices who would want Apple phone plans, according to the report.

Customers signing up with an MVNO account with Apple would no longer need to get such services directly through major carriers such as AT&T, Sprint, T-Mobile or Verizon.

The system was only being tested currently and no decisions had been taken.