Google Android Phone Finally Appears

Deutsche Telekom's (DT Quote) T-Mobile unit unveiled its new G1 cell phone Tuesday, the first device to feature Google's (GOOG Quote) new Android software.

T-Mobile is the exclusive carrier in the U.S. for the first Android-powered mobile phone. The G1 will be available at T-Mobile retail stores beginning Oct. 22 for $179 plus a two-year voice and data agreement. T-Mobile said it will also bring the new G1 phone to the U.K. in November and several other European countries, including Germany, Austria, Czech Republic and the Netherlands, in the first quarter of 2009.

The T-Mobile G1 offers full touch-screen functionality combined with a QWERTY keyboard, creating another rival for Apple's (AAPL Quote) popular iPhone 3G. The G1 will also include Google services such as Google Maps, Gmail and YouTube.

T-Mobile's G1

The phone will feature built-in support for T-Mobile's EDGE network, as well as Wi-Fi connections. The G1 will also work on T-Mobile's high-speed 3G network, although the carrier is still in the process of a nationwide 3G rollout.

"We are proud that T-Mobile is the first operator in the world to launch an Android-powered mobile device," said Christopher Schläffer, group product and innovation officer of Deutsche Telekom, in a release. "With the T-Mobile G1, we are continuing our strong tradition of being pioneers in the world of the open Internet."

The G1, produced by handset maker HTC, will also come preloaded with Amazon.com (AMZN Quote) software that will allow users to download MP3 music files directly to the handset, similar to Apple's iTunes mobile store on the iPhone.

Shares of T-Mobile's parent Deutsche Telekom were rising 0.2% to $15.58. Google was up 2% to $438.44. Google's T-Mobile G1 Phone: It's Here