T-Mobile To Launch Second Google Phone In August

The myTouch looks much like an iPhone and has many of the same features, including a similarly sized screen. It will cost $199 with a two-year contract. It will ship with software that allows it to connect to corporate e-mail servers. Such software became available for download to the G1 some months after it launched.

Cole Brodman, T-Mobile USA's chief technology officer, said the new phone should appeal to a much wider audience than the G1.

"We believe a lot of this market will come from people who are moving into the smart phone space for the first time," Brodman said. G1 buyers "were much more of a tech-enthusiast, early adopter-type crowd."

G1 owners will likely not be eligible for the subsidized $199 price for the myTouch, because the G1 came out so recently that T-Mobile has yet to recoup its subsidy through service fees. Many iPhone 3G owners are facing the same conundrum, as AT&T will not subsidize the newly released upgraded model until subscribers have "paid off" the subsidy.

Both the G1 and the myTouch are made by HTC Corp. of Taiwan, which cut its teeth making Windows Mobile-based smart phones.