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Google wanted to lose that bid - that was a gamble to get free whitespace access and have verizon pay enough money for it. You can read more of the details in this book:http://www.amazon.com/In-The-Plex-Google-Thinks/dp/141659658...

Additionally Google did try to disrupt the cellular companies a little by selling their phones unlocked through their own webstore, but the American market didn't buy them. Yes there really is only one network that gave you a deal if you did this (T-Mobile), but Americans seem to prefer subsidized phones with absurd monthly plans rather than paying for the phone up front and being free to choose the network.

"Prefer" is a stretch. It's not like consumers were presented with a choice between two carriers that were similar in every way except that one went with the subsidized model and the other did not.

The choice consumers had was either a crappy carrier, or one which forced you to go with absurd monthly plans.

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