Google has been working hard for already quite some time to be (omni)present on mobile platforms. Local search is one of the next hot things and Google is well-suited (and interested) to be a big player there. However, it now seems clear they are taking it further than simply offering mobile services.
The Google phone seems to launch shortly. There is a bit of discussion whether they will only focus on software or will go and actually launch a mobile phone. Engadget argues that it is all about a Linux-based Google OS. On the other hand, a blog article in Information Week doesn’t discard Google hardware. If you ask me software and services is Google’s strength and I reckon they’ll stick with that. That way they’ll also be able to remain friends with Apple.
It seems that Google will start its mobile adventure in India, and eventually quite possibly in the US it will even have its own network, although that’ll be something for early 2010s (if it even happpens).