Comment by seanc

Comment by seanc 2 days ago

I was at RIM at that time and saw _exactly_ the same thing. When I started in 2008, in addition to WiFi and apps they were squabbling with carriers about whether or not the Blackberry needed an antenna. Carriers were micromanaging devices to an astonishing degree.

The river of money from Macs, iPods and iTunes gave Steve Jobs a completely different kind of leverage in those carrier negotiations. Device only companies like Palm and RIM couldn't have broken that carrier strangle even if they did have the technology.

PlunderBunny 2 days ago

Were virtual network operators (?) - VNOs - a thing back then, and could a VNO make its own rules? If so, could Apple (or Palm or RIM) launch their devices without carrier compromise by also owning a virtual network? I guess this would have required a lot of money. Maybe Nokia could have done it?

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seanc 2 days ago

No, the carrier leverage did not come from network policy, it came from sales-channel. That is to say, in those days one way or another every device passed through a carrier's hands before reaching the customer. So carriers controlled pricing, and to a large degree, marketing. If they didn't like your device they would refuse to sell it and then you were stuck.
Unlike RIM or Palm, Apple could realistically choose not to sell their device at all, or at least not sell it for a while, and so they were able to break the carrier oligopsony. It also didn't hurt that Steve Jobs was, well, Steve Jobs. A one-of-one business negotiator.

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- scarface_74 a day ago
  
  That’s not exactly true. What Apple did in every market was make deals with the #2 or #3 carrier that was desperate to steal market share from the leader.
  Then when the leader started seeing customers lead. Apple could have the same terms with them.
  
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