Why the GPhone Will Be an LPhone

Makes sense:

At the core of Google's phone efforts is an operating system for mobile phones that will be based on Linux, the open-source software, according to industry executives familiar with the project.

While Google has built phone prototypes to test its software and show off its technology to manufacturers, the company is not likely to make phones, according to analysts.

In short, Google is not creating a gadget to rival the iPhone, but rather creating software that will be an alternative to Windows Mobile from Microsoft and other operating systems, which are built into phones sold by many manufacturers. And unlike Microsoft, Google is not expected to charge phone makers a licensing fee for the software.

"The essential point is that Google's strategy is to lead the creation of an open-source competitor to Windows Mobile," said an industry executive, who did not want his name used because his company has had contacts with Google. "They will put it in the open-source world and take the economics out of the Windows Mobile business."