The Internet penetration level in the developing countries like India is quite low (though the rate is increasing at a rapid pace) as compared to the penetration of Mobile Phones. This is true even in the rural section of the country. The likely reason for this might be communication revolution (Thanks to Reliance), growing income, lesser hesitation to spend more among the younger generation, bandwagon effect (true in the rural society) and so on. Nevertheless, expensive sets are within the reach now-a-days.
Google Corporation might reach to the furthest section with the help of this G-Phone specially in India to get in touch the behavior of the diversified India. Accordingly they would fix the strategy on the basis of the data they get. As the phone would be once again based on the Open Source mechanism and collaborative architecture (taking the comparative advantage of the specialized tech. companies) , Google would have incorporated the algorithm, mash ups, tracker and so on.
Through Internet it will take such a long time to reach to every section of the population (low penetration level, high overhead cost, low education and awareness therefore). Whereas through Mobile Phones it would be easier to Build the Brand among the mass. After that, they can use this device to make people aware and habituated with GOOGLE. In fact, Google is building the Brand in the Off-line segment also.
Delivering More proper Search Result region wise: If this model going to be true ( above process), Google will able to deliver more proper search result region wise, that is LOCAL SEARCH. This issue has become more and more vibrant in recent times. Perhaps they have already fix their algorithm towards that. And language translation will be more important for India, the next destination.
Steps for the Website Builders: Concentrate on Local Issue, include local, regional aspects to your website for the marketing purpose.