There have been rumors of a Google Phone circulating for several months now. In October, BizToolBelt squashed that rumor by letting us know that Google was actually working on cell phone software to rival Windows Mobile. Here it is a month later and Google made confirmation that there will be no G-Phone, making an official announcement about what they call the Open Handset Alliance (OPA) and new mobile software called Android.

It wasn’t that long ago Google was lobbying for an open access to part of the recently-auctioned wireless spectrum. Consistent with statements from representatives as well as the company’s history of advocacy for open access, Google will be developing an operating system - Android - that will include “all of the software to run a mobile phone, but without the proprietary obstacles that have hindered mobile innovation.” 

Android is intended to breakdown the boundaries of applications and exclusivity that come with selecting a wireless carrier and phone. According to Times Online, many carriers and manufacturers feel obligated to work with an internet powerhouse such as Google, but they are simultaneously unsettled by Google’s full plunge into the mobile world – and rightly so.

This new software will be yet another of Google’s free offerings, which could will undercut rivals who ask manufacturers to pay a fee in order to use their operating systems. Android has the potential to drive the prices of smart phones down if manufacturers don’t have to pay to play. Additionally, the open compatibility will allow programmers to create innovative applications to help make smart phones that much more functional and useful.  

From the Official Google Blog:

"It's important to recognize that the Open Handset Alliance and Android have the potential to be major changes from the status quo – one which will take patience and much investment by the various players before you'll see the first benefits. But we feel the potential gains for mobile customers around the world are worth the effort. If you’re a developer and this approach sounds exciting, give us a week or so and we’ll have an SDK available. If you’re a mobile user, you’ll have to wait a little longer, but some of our partners are targeting the second half of 2008 to ship phones based on the Android platform."

One thing is certain, with Google and the OPA breaking down the exclusivity barriers on which so many mobile software developers are dependant, Android has the potential to change the wireless industry as we know it. Who says competition is bad?