Reports at Digitimes suggest that Google is sourcing manufacturers to launch its own branded mobile phone. It’s thought they are evaluating a 3G handset, a cut above Apple’s iPhone which is stuck with old EDGE technology.

Mobile phone advertising will be a key component for mobile revenues in the future as voice tariffs head towards flat rates worldwide. Data prices will follow as mobile phones achieve high speed internet access. The services will not hit mass market unless they are at a reasonable cost; hence the only substantial revenues available to operators will be through advertising.