AT&T today bought into the 700 Mhz market by purchasing Aloha Partners, a move that gives AT&T potential broadband wireless coverage of 196 million people in 281 markets, according to the news release. The spectrum covers 72 of the top 100 and all of the top ten markets in the U.S.

As Om Malik noted today, the purchase appears to steer the price of the 700 Mhz auction scheduled for January 24, 2008, when the A and B spectrum blocks will be auctioned off by the FCC. Verizon, Google, eBay and other companies are considered likely bidders. (The FCC moved the auction date from January 16th to January 24th yesterday, October 8.)

Aloha Partners has been the country’s largest owner of the lower band of the UHF-TV spectrum, channels 52-59. Aloha had planned on using channels 54 and 59 to broadcast television to mobile phones, via its HiWire subsidiary. But so far it’s not clear what AT&T will do with this spectrum. Some of it is occupied by television broadcasters in specific markets, but they are supposed to give it up by February 2009. If and when AT&T clears out the spectrum, it can support up to 50,000 watts of power, meaning AT&T could quickly have a national broadband wireless network.

UPDATE: One wonders if this was part of Apple’s consideration for signing up with AT&T for the iPhone. Did Apple know something in advance?