Google pumps big money into GPhone

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Google is injecting hundreds of millions of dollars into its mobile phone project and is currently in discussion with mobile operators in both Europe and the US, according to newspaper reports.

Anian, a Reuters company that tracks industry trends for institutional investors, reported last month that Google had engaged Taiwan's High Tech Computer to design a Linux software-based phone for launch in the first quarter of 2008.

The Anian report cited industry sources as saying T-Mobile would likely be Google's US partner with Orange selling the phones in other markets.

Google has also developed prototype phones and talked over technical specifications with manufacturers including LG Electronics, The Wall Street Journal reports.

Controlling its own phone handsets would certainly make sense for Google. Earlier this week, a Google software engineer who works on the company's mobile projects told IT PRO's sister title PC Pro that developing for the ever-increasing number and variety of phone handsets was a huge, time-consuming challenge for the company.

He also revealed that the company prefers working on high-end smartphones with larger screens - such as the iPhone - because these handsets have the processors and memory required to fully exploit Google's applications, such as Maps and Gmail.

When pressed on plans for its own phone, a Google spokesman claimed the company is "partnering with carriers, manufacturers, and content providers around the world," without giving further details.

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