By Sharla Sikes

Google is reportedly beginning to shop around its “Gphone,” an ad-supported mobile handset.  Google plans to talk to major wireless network operators in hopes of producing a phone loaded with Google search engine, e-mail and new mobile web browser.

Rumor has it that Google has shown the prototypes to T-Mobile and Verizon, but claims the phone won’t be available for sale until next year. Fine tuning continues as Google seeks a vendor.

Like the iPhone, Google’s handset is a recent entry into the phone market by industry outsiders. Unlike Apple’s early summer $499 gotta-have, however, advertising would the the phone’s main source of revenue. Not everyone is going to want to listen to ads before making calls, but industry professionals don’t see that as a major hurdle to the phone’s sales.

“The average adult who can afford a cell phone is not going to want to listen to ads. So this is mainly for teenagers, twenty-somethings, high schoolers or people who can’t afford a phone,” said Jeff Kagan, a wireless and telecommunications industry analyst in Atlanta.

Rumors have been flying in the industry that Google would be introducing its own mobile phone, and the search engine giant recently announced it may bid on the 700 mhz spectrum that the U.S. Federal Communications Commission will soon bring to auction.

Kagan predicts that Google’s success is dependent on the details of its partnership with the network—and whether or not even younger folk and low-income users will tolerate intrusive advertising.

“There are a lot of unknowns, but generally speaking, it hasn’t worked yet,” said Kagan.

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