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Google Phones Home

Scott Moritz

We know this much about the new Google (GOOG) phone: It is out of this world.

Google says its long-awaited entry into the mobile phone arena -- a software system called Android -- will be announced noon Monday at a joint conference with a roster of hard chargers from the wireless industry.

Android, which is named for a company Google acquired two years ago, will work with the 30-member Open Handset Alliance to develop open-standard software to be available on phones starting in the middle of next year.

Google chief Eric Schmidt along with Motorola's (MOT) Ed Zander, Qualcomm's (QCOM) head Paul Jacobs and Deutsche Telekom's (DT) René Obermann will make the joint announcement.

The move is a bold attempt by some of the industry's leading players to crack the phone software market dominated by No. 1 handset maker Nokia (NOK) as well as the large operators such as Verizon (VZ) and AT&T (T).

The move squashes speculation that Google will manufacture its own phone to rival Apple's (AAPL) iPhone, or develop its own mobile operating system. Instead, the Android platform hopes to offer free phone software that can target mobile services such as search and advertising as sources of new revenue.

"With nearly 3 billion users worldwide, the mobile phone has become the most personal and ubiquitous communications device. However, the lack of a collaborative effort has made it a challenge for developers, wireless operators and handset manufacturers to respond as quickly as possible to the ever-changing needs of savvy mobile consumers," the companies said in a press release.

Google shares rose $11.46 to $722.71 and Motorola rose 3 cents to $17.98 in midday trading.