The Financial Times reports that Apple has begun discussions with big music labels about a new and radical business model, where you would get free access to all music on iTunes for a one time fee.

Nokia already launched an all-you-can-eat music offering with Comes with Music last year. As reported, there are restrictions to what Nokia calls free.

So, if Apple is going to find a way to offer free music bundled with iPod and iPhone devices there sure will be limitations on what you can do with the free music.

A usable free music offering for a premium on devices could definitely convert even more people from music pirates to legal users.
More details on the Financial Times.