Google has invested hundreds of millions of dollars in the cellphone project, say people who have been briefed on it. It has developed prototype handsets, made overtures to operators such as T-Mobile USA and Verizon Wireless, and talked over technical specifications with phone manufacturers. It hopes multiple manufacturers will make devices based on its specs and multiple carriers will offer them.
For wireless operators, the plans are a double-edged sword. Google's powerful brand and its popular Web services could help operators sign up more subscribers to data packages, on which they increasingly rely as voice revenue declines. However, operators have been wary about losing control over the mobile-ad market.
In recent months Google has rolled out mobile versions of products such as the YouTube video-sharing site. It has made deals to include its search engine or applications such as Google Maps and Gmail on select handsets. But the company has sometimes been frustrated at the limited distribution it has achieved. In some cases, Google has managed to get around operators.
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