We've heard rumors, but now we can say without almost full certainty that Asus is working on a low-cost "Eee Phone" to complement its mostly Asia-only Windows Mobile smartphones. But will it run Android?

Asus head Jonney Shih told the Times' Saul Hansell that the forthcoming Eee Phone will be integral for controlling a home full of innovative Asus gear—from Eee Top touchscreen PCs to the company's crazy new PC-in-a-keyboard home theater machine that wowed us at CES. It doesn't look like Saul pressed him on Android, but that has been the flavor of the rumors so far, and if you're going to do a modern smartphone on the cheap these days, Android's zero licensing fees probably make it the way to go. Look for it in the first half of this year, sayeth the rumors. [NYTimes]

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