the expensive part is building out all the towers for the end points and connecting them to the back bone fiber
Yep. As I posted earlier or elsewhere, ATT has 256 BILLION in fixed assets. So if anyone thinks Apple could just start a phone company, let that number sink in a bit.
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Yup, hard drive space in a server has the same cost model as a national or world-wide cell network. Clearly.
Don't forget the data networks that get the data to and from!
Oh wait, those are provided by the ISPs at TINY profit margins. Just the kind of business the dummies want Apple to buy into.
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2) What i said was: You may think the phone is subsidized. Its really not. Not to any large degree, at least. AT&T doesn't pay you 450 to sign up for a contract. Its more like "give you 50, shift 400 towards your 2 year contract". And, by doing that (locking yourself up) you'll probably lose more than those 50 in the end too, but thats somewhat besides the point.
However you want to look at it, I pay $100 a month for cell service and a new iPhone every year. That new iPhone would cost me $700. So if I break out the $700 and consider it spent on a phone, my service cost would be about $40 per month for data and phone. I don't know many people that would complain about that.