Google laid dark fiber and transpacific fiber to cut down on telecom expenses. It then peered with (or directly connected) or used a CDN (content delivery network) to further cut its transit costs.
Google was in on the 700 MHz spectrum auction but only as aploy to get the spectrum open access rules for when VZW bought it. Rumors often swirl around GOOG entering the access game (like buying Sprint), but it sticks to its knitting - search and SAAS (Layer 7).
Apps (and hosted email) wise, Google wants ISP's to re-sell its services. Too many are scared by the size of Google and their history with the RBOCs. And maybe rightly so as Google unveils TISP, the in-home wireless broadband service via your sewer. (It's a joke).
The other tool Google launched is "Measurement Labs, a server platform and a series of software tools to measure broadband speeds, whether or not your ISP is filtering BitTorrent traffic and a diagnostic tool for last-mile problems", according to GigaOm.
Google is working on the GDrive for online data storage. (See GigaOm's analysis here). Google's various tools already store pictures (Picasa), email (Gmail), documents (Apps), allows for sharing (though not easily) - like Microsoft products. Google and Cisco are playing catch up. One ominous thought:
“Before you know it, Google has become a daily and integral part of your digital portfolio. Not that this a bad thing given Google’s products are really good but it should make you think about how dependent you can become on Google for pretty much everything. The downside is you can lose access to a lot of essential information if Google, for whatever reason, locks you out.” - Mark Evans
I'd like GrandCentral, Google Talk, and Twitter to be integrated with OpenSocial and Google Apps.
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