August 19, 2008...3:48 pm

Google’s Android phone is one step closer to becoming a reality

A few more quick data points on Google’s new mobile phone that is going to see the first light of day on T-Mobile USA’s network later this year.

1) Google, likely responding to an unhappy developer community regarding the lack of new releases for its developer kit, released version 0.9 of its software development kit. The main claim is that this fixed a number of bugs and features a new home screen, but we now know that a BlueTooth API support and the GoogleTalk application are being pulled from Android for the time being. Note that this removal of the BlueTooth feature means that third-party support for BlueTooth is unlikely in the first release, but simple things like using a BlueTooth headset for calls should still be available in the initial release of the Google phone. A screen-shot (courtesy of anddev.org) shown below shows Google’s Street View application. All in all, the user interface looks fairly good, almost Windows-like to some degree, but certainly not as flashy as iPhone.

2) HTC’s Dream smartphone, which will run Google Android, received FCC approval yesterday. When will the device make its appearance in store shelves in still undetermined, although HTC did request back in June that the FCC hold off on release system details until November 10th. This timeframe seems to make sense from a selling perspective as T-Mobile would likely want to benefit from holiday sales to tout its unique new device that it hopes will help to lessen the hype around AT&T’s 3G iPhone.

These two data points for Google are a positive sign that its mobile phone plans are slowly coming together. However, it must be disappointed about how much time it’s taking to transform the traditional cell phone industry to make it more open and a better environment for Google advertising, and it likely overestimated the ability of the carriers to shift to this new paradigm. If it had known that Verizon in particular wouldn’t be so hot on the idea of a true “open access” wireless broadband access network, would Google have tried harder to outbid the competition in the 700MHz spectrum auction? Absolutely.

The launch of a site called http://freetheairwaves.com/ to promote the use of unused analog TV spectrum for a nationwide wireless broadband network is a sign that Google is looking at how it can perhaps displace the traditional carrier out of the value chain. Combined with its initiatives with WiMAX (with Clearwire) and with traditional carriers through the Open Handset Alliance, Google is clearly pursuing all avenues to get its search product out in the hands of the consumer on the move. And with Google streching into becoming a carrier in its own right (if it can get the white space regulations approved) and streching into having more control over end devices with the Google Android platform, all of the pieces are slowly coming into place, helping Google to become a bigger piece of the value chain.

The downside of course is that new devices from Nokia, RIM and Apple are better than ever, and are getting smarter from an application perspective. With competition for the consumer smartphone dollar rising, It remains to be seen whether Google’s mobile platform has what it takes to allow Android to take off as we enter Q4/08.