Google to launch its own phone

Apart from pitching itself into headlong competition with software giant Microsoft's browswer IE, and Apple's smartphoone, search engine giant Google is now foraying into the lucrative mobile handset market with its own branded phone, which will be sold directly to customers.

Google engineers across the world have developed a new handset known internally as 'Nexus One', built in association with Taiwanese manufacturers HTC. The phone could be on sale over the internet in the next year. The move, analysts say, would bypass the mobile phone networks.

According to several reports, the company seems to be ready to dump its past strategy of associating with major mobile operators and will sell the unlocked handset itself online. Though this would leave the networks out of the loop, customers would still need to have some contract or arrangement if they want to use the handset's ordinary phone functions.

According to Silicon Valley news blog Techcrunch which was first with the story, the handset would go on sale in the US in January even as The Wall Street Journal said that Google could link up with a partner at a later date, despite its decision to go it alone so far.

Analysts say with the move Google could test some of its own experimental ideas - including internet calling service Google Voice, as well as the possibility of subsidising phone calls with advertising revenue.

The handset runs Google's Android operating system, and represents a bold attempt to create a new platform to take on the more established rivals including Nokia, Apple, Microsoft and BlackBerry maker Research in Motion.