Apple - the next Telecom Company?

A recent BusinessWeek article cites "sources" close to Steve Jobs that Apple may enter the January 16^th spectrum auction by the FCC. The 700MHz spectrum is some of the best because at these low frequencies, it can penetrate building better and provide better data & internet access. The minimum bid if $4.6B and Apple has $14B in cash. Both Google and Apple could really drag down their profits by getting into the cut-throat service provider business. The name of the game here is coverage.  Jobs has made a point that WiFi is better than 2.5G and 3G, true, but it does not have the coverage model that WWAN does. Factor in the lack of WiFi roaming and you end up with a very fragmented network. Network aggregation like what iPass does might work however. Imagine having an Apple or Google SIM chip to place in your device of choice. Apple sales of the iPhone has already exceeded 1,000,000 units in only 74 days. The Internet companies getting in the business will be the next inflection point of the Internet as we know it today.