They're not thinking about this for what we're currently call a "phone". They're looking at very small form factor devices which keep their data in the cloud, are configured by another (arbitrary) device which talks to the same cloud, and which make either sporadic or continual data connections with whatever available networks they find, to keep up to date. Imagine very small devices (wristwatches, eyeglasses, earplugs) with 802.11/UMTS/WiMAX radios (which use a mini-sim to identify themselves to whichever network they encounter). And they're thinking about these things as universal identifiers and payment tokens.
Right now you go running with an iPod. Instead you'll have a iPlug, a pair of little in-ear headphones, but with no cable and nothing strapped to your arm. You set up your music program on a tablet, and it seamlessly syncs. You run further than you'd expected, so the iPlug connects to the network and downloads more music. Miles from home your knee gives out. You touch the iPlug and say "taxi". A taxi comes (sent by Apple to the location the iPlug knew; Apple gets a dollar from the taxi fare, which you pay using the iPlug).
You have a iSim unit in your iWatch. You're thirsty, so you touch the watch and say "coffee shop". The watch face shows an arrow to a nearby one, and the distance, and walks you there. Apple gets a dollar. You buy a drink with the iSIM as a payment token (Apple gets 30 cents) and sit down at a table. The table's surface is an active display; it talks to your iWatch and opens a connection to your account in the iCloud. Your personal news appears, your emails, your documents. You do some work, browse some stuff, and when you're done you stand up and the table blinks off. Things will be as you left them when you next peer with an active display - at home, in the car, on the train, at the office, on the beach.
All of this stuff has been done, in various disconnected ways, already. You can pay for stuff with your phone, in some places. Most Europeans (well, Brits at least) have smart cards in their credit cards. You could hotdesk 10 years ago with a Sunray (kinda). You can unlock doors with a Dallas button token. Having super-cheap super-light totally ubiquitous networking makes the whole thing join up into a compelling, powerful, system.
You'll never be alone again.