Google, Verizon Try to Smash AT&T-Apple iPhone

NEW YORK (TheStreet) -- Verizon's (VZ) partnership with Google (GOOG) to develop Android software applications, services and phones sets up a rival camp to AT&T (T) and Apple's (AAPL) iPhone.

No terms were disclosed on the nonexclusive pact between Google and Verizon, which comes after years of joint development work. The move serves as a warm-up to the introduction of Motorola's first Android phone for Verizon expected as early as today.

"After years of working together, and four kids they've decided to make it official," says Telecom Pragmatics analyst Sam Greenholtz.

Verizon has high hopes for Android and the upcoming touchscreen phone from Motorola called Sholes or Tao. Verizon is counting on new phones from Motorola and Research In Motion (RIMM) to keep customers from switching to AT&T for the iPhone.

Google's Android phones will be sold by Verizon, Sprint (S) and Deutsche Telekom's (DT) T-Mobile unit during the holidays, with AT&T the only telco not featuring any Android phones.

Motorola has staked its turnaround, and possibly the survival of its handset business, on the success of Android phones. And Verizon has been so immediately focused on Android and BlackBerry that it has had to limit its support and preparation for the arrival of Palm's (PALM) Pre and Pixi phones in January.

Verizon plans a Web cast at 10 a.m. EDT Tuesday to showcase its Google Android partnership.

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