How Would Apple Streaming TV Work?

        OK, bright and knowledgeable PMUG members and friends:  how would this work?    David Passell writes, "On the recent evening news there was the statement that Apple's proposed streaming TV that included local channels (except NBC) would let you 'cut the cable' and free you from those expenses (by implication that exploit you). 
        He explains, "I have Cable One that brings in my internet and has my email server. I also maintain my 'northlink' email addresses via a nominal monthly charge. I also have a magic jack that provides me with unlimited national phone service. Here I could 'cut the cable' to my landline phone number, or I could let the landline bring in my internet via DSL and eliminate Cable One.  
        "BUT: How would I 'cut the cable' and use the touted Apple Streaming without the above internet interface that my router provides (from cable or DSL) in my home environment? In a big city where there are WiFi hot spots, that might work. (e.g. if i lived near the library or downtown).
        "Besides, Apple would also have a monthly fee not quite as high."
        So, here's the biggie:  "Can somebody explain the magic?"