Whilst I understand Google's desire to get into the 'mobile' space- they have stated on a number of occasions that they are a software business - building, managing a national wireless sounds like hard work.

the big difference between the UK and US is that Mobile Virtual Network Operator (MVNO) in the UK are much more common (and its a more mature market). This would fit Google's approach much better.

You could insert 'Apple' for 'Google' and it would have as much credibility. Maybe a tad more.

It seems likely to me that Google isn't really interested in being a operator, but wants mobile phone users to have greater access to it's service. Currently Mobile phones in the UK have stupidly high internet charges and come plastered in the operators own software as they want to keep any potential revenue stream to themselves.

Google hasn't got a profit margin (currently) in the mobile business so probably feels it can afford to offer a service with low revenue if it increases use of it's other services (including AdSense), at the very least it will force the operators to offer a more competitive service to compete which benefits Google anyway.