14 DAY TRIAL // Recent rumors paint Apple as one of the contenders for the FCC's auction of the 700MHz wireless spectrum. Although this would potentially open up a lot of doors for Apple, the costs could prove to be too high for a company that is used to taking risks and having a significant war-chest to fall back on if things go bad.
If Apple were to win the auction, it would have access to wireless communications far faster than any current cellular or Wi-Fi technology, with a longer range and the ability to penetrate far behind walls and unfavorable weather. Devices such as the iPhone could easily become independent of carriers and all of Apple's other products could easily tap into this network. While Apple could stand to gain a lot from winning the auction, it could not make use of such services until 2009, the scheduled year of death for analog TV, which currently holds the 700MHz range. Furthermore, the $4.6 billion minimum bid and the total of $9 billion required to win enough spectrum for a nationwide network could prove to be a bit expensive even for Apple. On top of that the company would have to add the cost of building infrastructure, maintenance and the handling of subscribers.
Although Apple could take on such an endeavor should it wish to, the financial strain might cramp the style of the otherwise innovative and experimental company. Additionally, the company faces stiff competition from other bidders such as Google, DirecTV and Skype owner eBay. Another popular notion is that Apple and Google might team up on such a venture, considering that the two companies have been on very friendly terms for quite some time. While a long term partnership between Apple and Google on such a project could lead to some very interesting services, there has been no indication of any such plan.