I would offer the following scenario for consideration:

Google will bid and win spectrum and open it up for 3rd Parties use in exchange for rights (Ad revenues and exclusive placement on Portals). This will fill in the final piece they miss for their Cloud Computing business and that is Access and or Control of the Last Mile Broadband links to end users.
Many 3rd Parties already own and operate a Cellular or Broadband Wireless Network in their markets and would easily be able to deploy a 700Mhz network on this infrastructure. These Service providers see the value of a direct link to Google Cloud as of great value (Low Latency/High Quality Data Center Management and access to Hosted APps etc.)

Google need only open its eyes and look past the big RBOC to the Indendent Telco Operators who lack access to serious Content and are willing to deploy a Fiber link to one of Googles local data centers to bring Google into their Wired and Wireless Last Mile.

Jim A
Strategic Analyst
HTC (www.htcinc.net)
843-369-8406