Analyst: Apple, Cingular to team for iPhone MVNO

Apple Computer is poised to launch its own MVNO service by acquiring wholesale capacity from Cingular Wireless, according to a note by UBS AG telecom analyst Benjamin Reitzes, who speculates the company would then sell its much-rumored iPhone music player/networked handset across its 174 retail outlets.

"Apple is embarking on another chapter in multiplying its revenue streams as it sells more accessories and cellular services," Reitzes wrote. "While there are number of challenges with an MVNO, Apple may be the best positioned of any player yet to make it work given its distribution, brand, installed base of iPods and software and iTunes integration."

Citing unnamed sources, Reitzes said Apple plans to officially announce the iPhone in March or April, adding the device will likely include between 4 and 8 GB of flash memory and a digital camera.

For more on the rumored Apple plans:

- read this Barron's article

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