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Cell Phone Rumors Ring True For Google

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By MICHAEL LIEDTKE, The Associated Press

Published: November 6, 2007

SAN FRANCISCO - Confirming its long-rumored foray into the mobile market, Google said Monday that it is developing a free cell phone software package so the Internet search leader can more easily peddle ads and services to people who aren't in front of a PC.

Although the announcement ended months of speculation about the Mountain View-based company's cellular ambitions, the first phones equipped with Google's so-called "software stack" still won't be available until the second half of 2008.

And Google won't be making the phones, nor does it plan to stamp its prized brand on the devices. Instead, it will work with four cell phone manufacturers who have agreed to use Google's programs in their handsets. Consumers will have to buy a new phone to get the Google software.

Engineers have been working on the software for three years, dating back to a Silicon Valley startup called Android Inc. that Google acquired in 2005. The mobile software still bears the Android name in acknowledgment of its heritage.

"This is going to bring the Internet into cell phones in a very cool way," promised Andy Rubin, an Android co-founder who is now Google's director of mobile platforms.

Even with its market debut months away, Google's software looms as a significant threat to other mobile operating systems made by Microsoft, Research In Motion, Palm and Symbian, which is owned by Nokia and several other major phone makers.

Because Google's software will be free, it could undercut rivals who charge handset makers to install their operating systems. It also promises to make smart phones less expensive because manufacturers won't have to pay for software.

Google's system also will be based on computer code that can be openly distributed among programmers. That, Google hopes, will encourage developers to create new applications and other software improvements that could spawn new uses for smart phones. A development tool kit for working on the new platform will be released next week.

"This is a shot that is going to be heard around the world, but it's just the first shot in what is going to be a very protracted battle in the next frontier of the mobile Web," said Michael Gartenberg, a Jupiter Research vice president.

So far, Motorola, Samsung Electronics, HTC and LG Electronics have agreed to use Google's software in some of their phones.

The list of wireless carriers that have agreed to provide service for the Google-powered phone in the United States include Sprint Nextel and T-Mobile. China Mobile, Telefonica in Spain and Telecom Italia are among the carriers that have signed on to provide service outside the United States.

The expansion represents Google's latest attempt to muscle its way into a new market - a trend that has raised concerns about the 9-year-old company growing too powerful.

Diversifying into cell phone software could open more digital doors for Google to build upon the trove of information that it has collected about its users' personal interests so it can profit by showing more appealing ads.

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