Google will partner with wireless carriers to make Project Loon a reality

Google opted not to buy "a relatively thin piece of harmonized spectrum" and decided Project Loon would instead use spectrum that's already owned by wireless carriers across the globe.

Rather than pay to license spectrum, Google will lease the balloons to carriers as they fly over countries where each company provides service.

"That actually makes you feel much more comfortable that I’m not invading your country or I’m about to take your users," Teller said. "So now you and I can be great friends, and we don’t even need to buy the spectrum." This approach also gives Google a "much thicker wedge" offering far more bandwidth.