All else being equal, demand for a product increases when the prices of its complements decrease.
Internet access complements all of Google's other products. It is in their interest to commoditize it even further and make it cheaper. If I were Verizon and Comcast I'd be worried.
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Google's stated reason for the purchase makes sense, providing more internet connectivity, etc. I give them the benefit of the doubt on this one.
Off topic, but: my first two bosses at SAIC were Titan founders.
Read Spolsky's Strategy Letter V[1].
All else being equal, demand for a product increases when the prices of its complements decrease.
Internet access complements all of Google's other products. It is in their interest to commoditize it even further and make it cheaper. If I were Verizon and Comcast I'd be worried.
1: http://www.joelonsoftware.com/articles/StrategyLetterV.html