Elizabeth Judge, Telecoms Correspondent
2 for 1 tickets to Singin' In The Rain, this coming Monday. Book now
Google is preparing to shake up the mobile sector by unveiling the first
“Gphone”.
The search giant, which is angling for a chunk of the potentially highly
lucrative wireless advertising market, is expected to produce a prototype
mobile handset next week at the Mobile World Congress show.
The move will intensify the battle between the Californian group and its
rival, Microsoft. The two are currently sparring over Microsoft’s audacious
$44.6 billion bid for rival Yahoo!.
Microsoft launched its own operating system for mobile phones several years
ago and has negotiated tie-ups with many of the major handset makers. Google
revealed late last year that it had developed a new operating system for
mobile phones but refused to elaborate on the kind of handsets in which its
system, called Android, would be encased. Industry analysts believe that the
Californian group has been plotting with Dell over a handset that is
customised to showcase the software.
The computer group has dabbled in the mobile market before and last year
poached Ron Garriques from Mot-rola, the world’s third-biggest mobile
handset maker. The extent of Google’s ambitions in mobile has been
underlined by its participation in the multibillion-dollar Federal
Communications Commission spectrum auction under way in America. Bids have
already passed $4 billion.
The failure of 3G services on mobile phones and a lack of “web-friendly”
handsets had held back the market for mobile advertising. However, with
phones becoming more sophisticated and mobile network speeds faster, mobile
is now seen as the next battle-ground for advertisers. More than 20 per cent
of UK mobile subscribers are expected to have access to the mobile internet
at broadband speeds by the end of this year.
Informa Telecoms and Media, an analyst, estimates that mobile advertising
could be worth over $11 billion by 2011. Google believes that the
possibilities of location-based search advertising opened up by the mobile
internet are “the recreation of the PC story”.
Enjoy screenings of all the classic films you love, plus take advantage of two-for-one tickets
Have you ever dreamed of owning your own racehorse or a beautiful painting?
Enjoy comfort, safety, space and great design. Plus enter our great competition
Times Online's new TV show helps you make the right decisions for your pet
Are you California dreaming? Explore the wonders of the Golden State. Also enter our fantastic competition
Do you have what it takes to be a Times photographer?
Your brain is capable of more than you might think...
Find out to make the most of your money with our wealth management guides
Need help with your property? We have an entire how to guide - buying, selling, letting, moving, to help you
We are seeking entries for the inaugural Sunday Times Best Green Companies Awards
Enjoy some wonderful inspiring wildlife moments
An interactive preview of the brand new For Your Eyes Only exhibition

Love Sudoku? Play our brand new interactive game: with added functionality and daily prizes

Are you irritable when you return from work? Drained of emotion? You could be suffering from boreout
Prepare for some shock and awe, petrol lovers. Despite the greens trying to wipe it out, the car is about to offer us the most exciting year ever
We've trawled the brochures and websites to find this summer’s best holidays for every taste and budget

Find a course, arrange a game and save money
2007/07
£57,500
South East England
2007/07
£40,995
South East England
2006/06
£41,995
South East England
Great car insurance deals online
£40-55k+benefits+uncapped commission
Morgan Keating
South East
Up to £30,000
GLE
London
£
c£75,000 + executive benefits
Morgan Keating
London and South
Unpaid with travel expenses
Network Rail
Globrix, the property search engine
Visit Times Online Property for homes for sale or rent
Residential development site with planning permission
£1,500,000
Mortgages, bank accounts & money transfers to help you buy abroad
Dinarobin Hotel Golf & Spa 7 nights
From £1830 per person – saving £530.
Walking & multi-activity holidays in Cauterets. Stylish self-catering apartments.
From 350€ for 7 nights.
SAVE 25% on Sandals Luxury Resorts
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Search globrix.com to buy or rent UK property.
© Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
> I wish Google would do something better for mankind
> with their billions of dollars than
They are. Visit www.google.org and see for yourself. For example, they are funding research on creating renewable energy that's cheaper than coal as an effort to curb greenhouse gas emission. Assuming you believe in global warming, I think you would agree that that will benefit mankind.
> sell us crappy phones and forcing Google Ads down our necks.
You don't understand... Google is creating an open source platform that will lower the cost of smartphone development. It is open source with no strings attached which means you are free to throw out all the Google applications and install anything else. You certainly don't have to see ads if you don't want to.
Mike, San Francisco, CA
Repeat after me "There is and will be no Gphone". Google is a software company not a hardware one. And, has no intention of becoming one and restricting Android to one device. Dell could release a phone that runs android. It won't be called GPhone.
There i've said it.
Dushyanth Inguva, Jersey City, USA
I've actually seen the new phone OS, Android (not a pun) on the Google blog page and it looks very nice. It has Google Earth on it and lots of nice features.
I just don't want to get ads for methods of enlarging my penis every time I text my girlfriend to tell her I love her. Or ads for Prozac every time I text my boss to tell him I'm ill!
Think that sounds absurd? That's the reality of Google Ads.
I really hope the largest internet corporation, which intends to guide the future of humanity, holds something more than an ability to stuff ads into any hair-brained scheme they conceive and promote. But then again, that's the reality.
But I guess there ad system is flawless at finding out what I want/need, and will certainly enrich my life.
Nice one Google, (Google ads at the bottom of this page)
"Franchise Opportunities - Nationwide, Valeting Cars, Boats, Motorhomes, Low Start-up cost. www.****awash.co.uk"
Andrew Corr, Burton On Trent, Staffs/UK
Definitely true that Google is an ad company. That is how they make money, and they're good at it. If this happens, Google will probably have users buy the handset but not service, or service costs will be very low compared to the rest of the market currently.
Scott, El Paso, Texas
Microsoft has several divisions. They are all completely subsidised by MS WIndows and MS Office. As independent businesses, the other divisions would have long since collapsed. This equates to unfair competition in those loss-making areas.
Google is headed the same way isn't it? Makes all it money from Google Ads to in order subsidise its yet to be fully disclosed grand plans. This will effectively prevent other creative companies from innovating but probably with far more serious and wider consequences.
Freddy, Portola Valley, US, CA
well you can always stick with your current network and phone Andrew, i doubt that Google are going to force you to use their phones.
i think its most likely that they would want to take the blyk route.
(blyk is a mobile network that is free for the end user because of adverts.)
Pete , London, England
Google is an an advertising company. It just uses technology to sell ads.
Roger, Milan, Italy
Does that we'll have to find a G-spot to get the internet on it? If so most men will simply not be able to use it!
Terry L, Oxford, UK
Google offer can offer a search engine and lots of other useful programs for free because of advertising. The same should be possible with mobile phones. Why not consider that calls should become cheaper or even free, instead of looking on the negative side?
Antony, Lugano, CH
I think it's very unethical to be bombarded by advertisements by a service you are paying for.
Google seem to have no problem with this as they think what they are doing is just and beneficial for humanity.
I don't know about anyone else, but I just want a phone that makes and receives calls.
I wish Google would do something better for mankind with their billions of dollars than sell us crappy phones and forcing Google Ads down our necks.
Andrew Corr, Burton On Trent, Staffs/UK