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Google announced they are going to try to become an ISP, a fast ISP, with gigabit fiber routing directly to your home. Greg Sterling has a lot of history on how and why this is happening.
I was asked why this is happening by some real reporters and I will link to their story later, when it goes live. In short, it is about getting more people to click on more Google ads.
We have threads on the topic at WebmasterWorld and Google Web Search Help. Probably my favorite comment is the first one at WebmasterWorld:
What's next with Google? Change your muffler?
Outside of that, there are some serious concerns about this project. Concerns on the business side, infrastructure side, privacy side and webmaster side. If I had more time, I'd write up a five page document on those concerns, but most of you are bright and can read my mind by now.
Forum discussion at WebmasterWorld and Google Web Search Help.
Update: Here is that USA Today piece with some quotes from me.
