This isn't going to further endear Google with the current telecom establishment...
In the Internet giant’s view of the future, consumers would buy a wireless phone at a store, but instead of being forced to use a specific carrier, they would be free to pick any carrier they wanted. Instead of wireless carriers choosing what software goes on their phones, users would be free to put any software they want on them.
Google believes that the cost of voice calls and data connections to the Internet may be partly subsidized by advertisements brought to users by Google’s powerful online advertising machine.
There might even be a Google phone.