Is the Google Phone on the way?

There are rumors circulating that a Google Phone (possibly named Nexus One) could be on the way by January 2010. The phone will run Android 2.1 and be manufactured by HTC, but will carry the Google name.

The phone could be a game-changer in many ways. For one thing, the phone will be unlocked, so it can be used on both AT&T’s and T-Mobile’s network. It will also be sold in retail locations, and with the iPhone’s exclusivity agreement with AT&T about to expire, it could open up a potentially interesting competition. As for features, it will have a touch screen, two microphones, and voice-to-text, for those who don’t like typing on a touch screen.

This could really heat up competition with the iPhone, and possibly change the marketplace for cell phones. Right now, phones are typically purchased at a carrier’s store and linked to their service. With this business model, the purchase of the device and the service are separated in a way which should encourage competition and encourage other equipment makers to give this model a shot.

There’s no question the Google Phone has the potential to be revolutionary from a technological perspective, but its greatest impact could be on the cell phone industry’s business model