I predict that Google is going to send geographically-contextual ads to their cell phones, just as they now serve up site-contextual ads to web surfers.
Using GPS coordinates from the phone, Google servers will send to your phone, in real time, ads and promos for stores that you are physically close to.
The phone will be free to consumers (albeit you will have to wait for ads to play). The cost of the phone is basically subsidized by the advertisers. Google will charge advertisers to show ads. Ads can include coupon barcodes, which are displayed on the phones LCD panel which can be scanned by any standard barcode scanner. When such ads are used, Google gets another cut (much like a click through on the web).
Sprint has a patent on such services, so Google either has licensed this from Sprint or will contest the patent. My guess is the prior.
Google is going to make a stunning fortune with this new service. Sprint, as patent holder, may make some very hefty revenues as well.
Regards,
N. Bushman