Android is not Gphone, but a software platform by Google that may facilitate other phone makers and carriers to bring a phone to the masses using the newly allocated frequency spectrum. Google wants to be able to use some of the newly available spectrum the FCC opened up, but it's not clear what exactly they'll do with it.
In any event, Android will use the G3 network, and Open source platform that will facilitate free development of widgets, clocks, stock tickers, maps and whatnot -- which is an aside from iPhone's development kit because Apple will reserve veto rights to any app it doesn't like.
