T-Mobile USA and Google Inc. unveiled the first smart-phone powered by Google's Android operating system, as the Internet giant hopes to shake up the wireless industry.
The G1 represents the first direct attempt by Google to link its name with cellphones. The company, which dominates Internet search, has struggled to break through the controls of the wireless carriers and establish a strong foothold in the mobile Web.
The phone arrives after months of speculation and buzz surrounding a Google phone and its prospects as a rival to Apple Inc.'s iPhone.
Cole Brodman, chief technology officer of T-Mobile USA, called the device a game-changer. "The mobile Internet experience hasn't been compelling," he said. "We're going to change that."
The device also means a lot for T-Mobile USA, a unit of Deutsche Telekom AG, which needs a flagship device to promote its burgeoning third-generation network. The phone's maker, Taiwan's HTC Corp., which has slowly built up its brand as a premier smart-phone maker over the past year, also has a stake in its success.
The G1 has a touch-screen that slides up to reveal a full keypad underneath. The device is compatible with T-Mobile's 3G network, which it is early in the process of rolling out. Front and centre on the handset is a Google search interface.
The G1 will sell for $179 with a two-year contract with T-Mobile in the US The device will be available in the UK in November, and throughout Europe in the first quarter.
The device also features a mobile Web browser similar to Google's Chrome browser for the PC. The iPhone's slick browser has made other handset makers working to improve their offerings.
"G1 is a milestone in bringing the open Internet to the mobile platform," said Christopher Schladder, group product and innovation officer for Deutsche Telekom.
Google has been anxious to get into the mobile arena to access potentially lucrative opportunities from marrying its targeted ad technology to the phone's ability to determine a person's location. The company has said that mobile advertising represents a huge source of growth.
Google has already made ripples in the industry. Its maneuvering during the last wireless license auction forced Verizon Wireless - jointly owned by Verizon Communications Inc. and Vodafone Group PLC - to commit to open standards for its network.
Google isn't wholly relying on the G1. Another Android device for Sprint Nextel Corp. is in the works.
AT&T also says it is open to the idea of an Android phone. "If it makes sense for our customers, it's something we will consider offering," said AT&T spokesman Mark Siegel.
