Google phone is coming, believe it or not

People who have seen Google's prototype devices say they aren't as revolutionary as the iPhone. One was likened to a slim Nokia Corp. phone with a keyboard that slides out. Another phone format presented by Google looked more like a Treo or a BlackBerry.



It's not clear which manufacturers might build Google wireless devices, though people familiar with the project say LG Electronics Co. of South Korea is one company that has held talks with Google.



Google has already lined up a series of hardware component and software partners and signaled to carriers that it's open to various degrees of cooperation on their part, the people say.
Google has developed a prototype cell phone that could reach markets within a year, and plans to offer consumers free subscriptions by bundling advertisements with its search engine, e-mail and Web browser software applications, according to a story published today in The Wall Street Journal.

Google is showing the prototype to cell phone manufacturers and network operators as it continues to hone the technical specifications that will allow the phone to offer a better mobile Web browsing experience than current products, the story said.




The move would echo another recent product launched by a phone industry outsider, Apple Inc.’s iPhone. But Google’s product would draw its revenue from a sharply different source, relying on commercial advertising dollars instead of the sticker price of at least $499 for an iPhone and $60 per month for the AT&T service plan.




Negotiating the fairest way to split those advertising revenues with service providers could be a big hurdle for Google, one analyst said. Another problem is the potential that consumers could be scared off by the prospect of listening to advertisements before being able to make phone calls, said Jeff Kagan, a wireless and telecommunications industry analyst in Atlanta.