Google Phone Prototypes, Software, Project Costing Hundreds of Millions of DollarsS

Valleywag realizes that Google will not likely do phone hardware themselves. Whatever. As long as it supports the software, hopefully some shiny Mobile Google OS, we're interested. Either way, this is what the WSJ and Reuters said today:

•"Now it is drafting specifications for phones that can display all of Google's mobile applications at their best, and it is developing new software to run on them. The company is conducting much of the development work at a facility in Boston, and is working on a sophisticated new Web browser for cellphones."

•Google has invested hundreds of millions on the project.

•Google has also developed prototype phones, with partners like LG Electronics.

• "ads in the mobile phone is that they are twice as profitable or more than the nonmobile phone ads because they're more personal" says Eric Schmidt (from AllthingsD)

•In Europe, T-Mobile and Orange are believed to be partners. Verizon rejected their plans in the US because they wanted to share ad revenue.

•Taiwan's High Tech Computer Corp to design a Linux software-based phone for launch in the first quarter of 2008

Regardless of the reputations of both the WSJ and Reuters, take all of this with a grain of salt.

[Wall Street Journal via Reuters, gorgeous rendering from T3]