Comment by 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?
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.
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.