Well, here's the word. Apple with or without Google/AT&T will bid on the 700Mhz spectrum that will be auctioned by the US government in January of 2008. They need to buy about 22 Mhz of the spectrum (60Mhz is being sold) to cover the entire country.

As you may know, AT&T bought Aloha Partners 700Mhz...about 10 Mhz or about half the country. They need more. The market has vastly underestimated Steve's influence at AT&T as well as the money Apple is getting from AT&T.

Now the iPhone sells for $399..maybe a $200 profit max...right, WRONG! Receiving about $16-$17 per month per phone from AT&T is $400 more over 24 months...that's a $600 profit...on a $399 phone...150%. Insane...no..watch this!!!

Owning an iPhone is like owning a Ferrari but only able to drive it on the streets of Manhattan. You need an autobahn to really open up the Ferrari...it's a waste in traffic in Manhattan. Apple will secure the very, VERY valuable 700Mhz, either alone, with Google and or with AT&T. Apple will control it's own destiny and open up the 700Mhz band. As Apple is tight now with Intel, Apple will use Wimaxx to acheieve speeds similar to Wifi...that's speeds twice as fast as 3G.

The 700Mhz frequency is Gold in the sky! A wireless internet will one day be all there is. Whoever owns this beach front property owns the cell phone world. And no one will ever sell this to a competitor. Apple must buy in or control this area if they are to control their cell phone experience. And here's the best part.

As this network is already built out for analogue TV, it will cost little to change things for Wimaxx. Instant nationwide network no a signal that goes through walls way easier than any other Mhz band. So reception is better, distance travels longer and coverage is nationwide just as analogue TV is...and it will cost very little to maintain relative to what cell phone companies compete with...you only need 1/4 of the sites as the 1.8Ghz that most cell phones use. So others use a weaker signal which equates to more lost calls and static, more sites, higher expenses, etc..

Apple could pull of the coup d'etat of the century, if they said, buy your cell phone and use our Wimaxx to dial any number in the US and receive any call fo the monthly price of $0 for 2 years....the iPhone would be the hottest product even more so than the Razor was...just think a cell that is free for 2 years..that's huge...what does Apple gain from this...they could probably sell 100 million iPhones at $299 each over a 2 year period or less and own the cell phone market.

Then charge $50 per month for unlimited calling plans...still a good deal...and half or more of that would be profit! At say $30 per month multiplied by 100 million iPhones that's 3 billion a month or 36 billion per year...or $40 per share in earnings added to whatever else they sell...you're talking a stock price over $1,000 a share...maybe even $1,500.

If this takes 2-3-4-5 years...that's a 10 bagger! Apple will be the largest publicly traded company in the country and own both the computer and cell phone market.

Not a bad start eh?