• The Wall Street Journal, Friday, August 3, 2007 11 AM

Now that Google has upped the mobile wireless ante, the world is wondering whether the company plans to release an actual Google phone. The answer is yes, but not anytime soon. Indeed, the company is investing hundreds of millions in all kinds of cell phone research and development, including handset prototypes, although insiders say the models aren't as impressive as Apple's iPhone.

In the short-term, Google's more focused on developing ad-supported mobile applications and services--and making sure they come bundled with as many cell phone plans as possible. "We are partnering with almost all of the carriers and manufacturers to get Google search and other Google applications onto their devices and networks," a Google spokesperson said, but refused to comment on Google phone speculation. At the D: All Things Digital conference in May, Google CEO Eric Schmidt pointed out that ads in mobile phones are "twice as profitable or more than nonmobile phone ads because they're more personal."

As ever, Google's wireless push is both a good and bad thing for its potential partners. On the one hand, the company's powerful brand and services could help sell more data plans for the big carriers. On the other, Google's emergence on the mobile scene could result in them losing their iron grip on their networks and the mobile ad market.

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