So it turns out that Google was not working on the rumored gPhone; they were working on Android, what Google claims is "the first truly open and comprehensive platform for mobile devices." Google has a lot more information on their blogsite, but Android is a fundamental component of the Open Handset Alliance (OHA), "group of more than 30 technology and mobile companies who have come together to accelerate innovation in mobile and offer consumers a richer, less expensive, and better mobile experience."

This is really interesting news. Although most of the handset vendors will continue to offer Windows Mobile or Symbian based phones in addition to Android handsets , this could spur some innovation in the handset market. As phones grow up and MIDs come to market, the lines really begin to blur where one market ends and another begins. Will my phone get bigger or will my MID get smaller? I think both will need a wireless carrier - how will pricing work for this new market?

Lots of questions. No gPhone, but the Open Handset Alliance could certainly create a lower price point and richer feature set than the current OS offerings. Will they feature touch screens???

via Google, GigaOM