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Google’s Nexus One handset, made by HTC, a Taiwanese company, was unveiled today. Vic Gundotra of Google said its goal was to push the cellphone industry toward a more open approach to the Web, reports the NY Times.

The phone is available at www.google.com/phone starting today and Google will add more operators, including Verizon and Vodafone in the future. The Nexus One is unlocked and without service it costs $529. With a T-Mobile contract it costs $179.

It will operate on T-Mobile’s GSM cellular service with high speed data using their AWS band. It can take video, with one-click uploads to YouTube and runs Google Earth for Android, a first for mobile phones. You can zoom the earth around and into your location, just like the desktop application.

Google says they now have 20 devices with 59 operators in 48 countries. And because Android is free and open source, it continues to flourish. TechCrunch and Engadget have early reviews while C/Net, Engadget, GDGT, and Scoble have live coverage of the press conference today.

It’s not an Earth-shattering, paradigm-skewing device, says Engadget, just a good Android phone. The Nexus One features:

  • Processor: Qualcomm QSD8250 1Ghz Snapdragon CPU
  • Memory: ROM: 512 MB RAM: 512 MB
  • Display: Capacitive touch screen 3.7-inch OLED 480×800 Visual WVGA resolution
  • New software Android 2.1 (Eclair) including;
  • “Car Home” app using GPS and Navigation
  • Microsoft Exchange support (E-mail and contacts)
  • Built in flash support for Camera
  • Face book app
  • Live Wallpaper
  • Multiple different languages support
  • Back up my data feature

The HTC-built phone has a trackball, a 3.5mm headphone jack, micro-USB port, and a 5 megapixel camera. It runs on Android 2.1, similar to the OS which is currently running on the Motorola Droid (2.0.1) but does not have a hardware keyboard. There’s no multitouch on the Nexus One, meaning no pinch-to-zoom.

Bill Shrink totals up the cost of ownership (above) and finds the Nexus One compares favorably.

“The new paradigm is mobile computing and mobility,” said David B. Yoffie, a professor at the Harvard Business School. “That has the potential to change the economics of the Internet business and to redistribute profits yet again.”

Top Google executives, including Eric E. Schmidt, the chief executive, have long said that the mobile Internet was Google’s biggest opportunity for new growth. They orchestrated a string of acquisitions of companies with mobile-related technology, including Android, maker of a cellphone operating system; GrandCentral, a service for making calls that can bypass telephone lines; and AdMob, an advertising network for mobile applications. The AdMob deal is awaiting approval from regulators.

By creating its own handset, Google may expand advertising sales on mobile devices, a market that may grow to between $2 billion and $3 billion in the U.S. by 2013, up from less than $1 billion now, according to Sanford C. Bernstein & Co.

Google also invested far more aggressively than its competitors in mapping, which is likely to become the foundation of new advertising systems. Last month, Google came close to paying more than $500 million to acquire Yelp, a Web site for business listings and reviews. While the deal collapsed at the last minute, Google’s interest underscored its determination to become a force in mobile advertising, says Business Week.

Three months ago Android OS was tied for last place in consumer preference. But since then it has surged into second place ahead of all competitors except the iPhone OS X (28%) – which remains the number one choice for operating systems, although down 4-pts from previously.

Forty-two percent of respondents now report they own a smart phone – up 3-pts since September.

When it comes to satisfaction levels, the Apple iPhone continues to lead all other major cell phone manufacturers, with 74% of owners reporting they’re Very Satisfied with their iPhone. RIM ranks second with 42% saying they’re Very Satisfied, down 1-pt since September.

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