Google, The Mobile Phone Manufacturer?

Google has been testing the waters in the wireless industry, seeing if there is enough support for it to offer mobile phones customized to include various services provided by the company.

While the company will not manufacture the devices directly, it has apparently provided a list of specs to manufacturers, the Wall Street Journal reports. It has also apparently talked with at least two carriers, Verizon and T-Mobile.

Among the operators who it has talked to, T-Mobile USA seems to be most receptive to the plan. It is also talking to carriers internationally, the paper says.

Early prototypes seen by those close to the situation have likened them to a Treo or BlackBerry. One is said to look like one of the newer business-centric Nokia phones with a keyboard that slides out.

Hundreds of millions have already been invested into the project, and will probably include a tie-in to its massive advertising platform. No firm release date has been set, although they may make an appearance next year at the earliest.

“Google understands that ad monetization means that other services can be made cheaper. Carriers spend billions of dollars a year on building and maintaining infrastructure," Medio Systems chief advertising officer Omar Tawakol said.

"Obviously carriers don’t want to pay for infrastructure that someone else gives away for free. The white label solution is to work with the carriers and not compete with them."

The Mountain View, Calif. company is not commenting on the rumors of a Google phone, only saying it is actively pursuing deals to place Google products on mobile phones.

In any case, it appears that it may be hard for Google to convince some carriers to sign onto its plans. Some take issue with the amount of control Google is looking to have over mobile advertising as part of its deals, saying the company wants too large a share of revenues.

Mobile advertising is one of the fastest growing segments in online advertising, and it is expected to grow to a $14 billion business within in the next five years. Obviously, mobile phone operators are hesitant to relinquish control of what could be a substantial source of income in the years to come.