Apple Eyes the Wireless Auction

Still, even the possibility of an Apple bid is intriguing. For starters, it would mean Apple would no longer need to rely on a phone company to deliver songs, TV shows, and other digital fare purchased at its iTunes Music Store. As it is, the major complaint of iPhone shoppers isn’t with the phone, but with the pokey Net access from Apple’s exclusive U.S. partner, AT&T (T).

If it owned its own spectrum, Apple could provide the network service itself, possibly for far less than the $1,440 iPhone owners must now fork out over the course of the cheapest two-year contract. For example, Apple could hold down costs by letting users choose a Net telephony program such as Skype rather than develop its own voice software, say analysts.

Apple might even be able to give away network service for free, and make its money off services such as iTunes and possibly by selling subscribers advertising space. “With the kind of cash position they have and the kind of push they just made into the handset space [with the iPhone, and now with the iPod touch, which also has Apple's Safari Web browser built in], it makes a lot of sense for them,” says one former Apple executive.

Man, this last scenario really appeals to me. I’m not hopeful but it sounds great.