Another possibility for Google - in conjunction or separate from their dark fiber buy- would be to affiliate with Verizon FiOS- the new, souped up high speed Internet access service now being rolled out in selected markets.
Here's how this would work:
FiOS subscribers get access to premium television content thru their PC.
Subscriber information pinpoints the locality of each recipient, each subscriber.
Subscribers get rich media AdWords and AdSense ads tied to their locality, or even to the content of television clips or shows they are watching.
Not only rich media ads, but presence-related textual ads from local merchants. A travel show? How about a pointer somewhere within the UI that offers a listing of a travel agent specializing in the destination being discussed during the show?
Verizon gets a cut of the income from the ads Google serves up.
Makes sense? AdSense?