Report: Google mobile phone, software in the works

http://news3.xinhuanet.com/english/2007-03/19/content_5866807.htm

BEIJING, March 19 (Xinhuanet) -- The latest Wall Street rumor is Google is developing new software to run on Google mobile phones, along with integrated applications for accessing the search engine's Internet services.
A top Google executive in Europe confirmed the existence of a phone project this week, according to the Wall Street Journal. And Spanish site Noticias.com reported Google's chief for Spain and Portugal said her company has investigated developing a mobile phone.
But, so far, no official confirmation on either project.
"Mobile is an important area for Google and we remain focused on creating applications and establishing and growing partnerships with industry leaders to develop innovative services for users worldwide," said Google spokeswoman Erin Fors in a statement. "However, we have nothing further to announce."
The first whispers about a Google phone emerged in December 2006 when The Observer reported Google seems to be interested in developing a "branded Google phone." The Observer also reported Google has held talks with Orange about a multi-billion-dollar partnership to create a "Google phone" that makes a web search simple.
The article quoted a source close to the talks, saying: "Google are software experts and are doing some amazing work compressing data so that the mobile user gets a much better experience. They don't know so much about mobiles, but they are eager to learn from Orange's years of experience."
Google CEO Eric Schmidt told Reuters in November 2006, he thinks in the future mobile phones should be free for the consumers. Not for everyone, but for those who are willing to accept watching targeted forms of advertising. Speaking with Reuters, Schmidt said mobile phones are used eight to 10 hours a day for talking, texting or Web access.
"Your mobile phone should be free," Schmidt told Reuters. "It just makes sense that subsidies should increase" as advertising rises on mobile phones.
Eric Schmidt added also he believes mobile phones may never become totally free to the consumer. At the time, Eric Schmidt also said Google had no plans to directly give away phones itself.