Google and Verizon just made their announcement, which will bring Android handsets to Verizon, and potentially more:

Verizon Wireless and Google(TM) today announced a strategic partnership that will leverage the Verizon Wireless network and the best of the Android(TM) open platform to deliver leading-edge mobile applications, services and devices. Both companies view this agreement as an opportunity to offer consumers an array of products that combine the speed of the nation's largest and most reliable 3G network with the flexibility of the Android mobile platform.

Integral to this agreement is a commitment by the companies to devote substantial resources to accelerate delivery of leading-edge innovation that will put unique applications in the hands of consumers quickly. The two industry leaders will create, market and distribute products and services, with Verizon Wireless also contributing the breadth of its nationwide distribution channels. Consumers will be able to purchase products resulting from the collaboration in Verizon Wireless retail and online stores.

Verizon Wireless and Google plan to co-develop several Android-based devices that will be pre-loaded with innovative applications from both parties as well as third-party developers. The family of Android phones on the Verizon Wireless network will come from leading handset manufacturers.

(emphasis added)

This is about Android handsets but also about a broader array of services and potential devices that would use Verizon's network. What those are and when they might actually materialize remains to be seen.

Google lost its bid to be the default search provider on Verizon's handsets to Microsoft. But this isn't a bad concession prize. It will be interesting to see how Verizon reconciles its contractual obligations to Microsoft under their search and ads deal when it comes to Android handsets. 

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I offer some additional thoughts in my post at Search Engine Land.