• by Mark Walsh  @markfwal, October 7, 2009

Ending months of speculation, Google and Verizon Wireless Tuesday announced plans to jointly create a series of Android-powered phones and other devices.

The pairing of the Internet giant and the nation's largest wireless carrier potentially gives Verizon a hot smartphone to compete with the iPhone, while providing Google with expanded distribution for its Android mobile operating system. Specifically, the companies will introduce two new phones in the coming weeks, with additional devices including smartphones, feature phones and netbooks envisioned down the road.

Boy Genius Report suggested Tuesday that Verizon's version of the HTC Hero would be the first phone released, in November. Sprint plans to debut its own Android-powered HTC Hero later on Oct. 11. The new alliances with both Verizon and Sprint show the Google operating system is gaining ground a year after it launched on T-Mobile's G1 handset.

The most recent report from mobile ad network AdMob also shows that Android now accounts for 13% of U.S. mobile ad impressions on smartphones -- third behind Apple and BlackBerry-maker Research in Motion (RIM). The Verizon deal should only push that share higher.

Like T-Mobile and Sprint, Verizon is teaming with Google to find an answer to the AT&T-iPhone juggernaut in the smartphone market. To date, Verizon has had little success fielding a strong rival to the popular Apple device, despite owning what is widely viewed as the most reliable network among the major U.S. carriers. It definitely needs a "hero" device to go with its network.

"Verizon Wireless needs Android both to fight Apple over at AT&T and to avoid an over-reliance on RIM," said Avi Greengart, research director, consumer devices, at technology research firm Current Analysis. Verizon is expected to come out with a sequel to the successful BlackBerry Storm in late October -- almost a year after the original was released.

Verizon's weakness in handsets was underscored by a recent study by market research firm CFI Group, which found that only 38% of Verizon smartphone customers say their current phone is their ideal smartphone -- the lowest percentage of any wireless provider.

One feature that Verizon plans to offer through Google that AT&T doesn't is Google Voice, the calling system that Apple has blocked from the App Store because it duplicates functions of the iPhone. The Federal Trade Commission is now investigating rejection of the app.

Verizon and Google emphasized that devices they develop will come pre-loaded with applications from both as well as third-party applications. Greengart noted that agreement will help the carrier underscore its more recent embrace of a more open wireless environment in contrast its traditional walled-garden approach.

Sue Marek, editor in chief at FierceMarkets, went so far as to suggest that Verizon is really about keeping the Federal Communications Commission from imposing net neutrality regulations on wireless as well as wireline networks.

Greengart added that any benefit Verizon accrues from appearing more pro-net neutrality would be secondary to its main objective of joining with Google to better compete with AT&T and Apple. What will actually result from the partnership remains hazy, however.

"Beyond the obvious--that Verizon Wireless will be launching Android phones soon -- there isn't much substance to the announcement," said Greengart. "They're working together, they're building apps and platforms, and the word 'exclusive' never appears in the carefully crafted press release."