Google spending hundreds of millions on mobile: WSJ

NEW YORK (Reuters) - Google Inc (GOOG.O: Quote, Profile, Research) has invested hundreds of millions of dollars in its cell phone project and is courting U.S. and European mobile operators, The Wall Street Journal reported on Thursday.

Anian, a Reuters company that tracks industry trends for institutional investors, reported last month that Google had engaged Taiwan's High Tech Computer (2498.TW: Quote, Profile, Research) to design a Linux software-based phone for launch in the first quarter of 2008.

The Anian report cited industry sources as saying T-Mobile, owned by Deutsche Telekom (DTEGn.DE: Quote, Profile, Research), would likely be Google's U.S. partner with France Telecom's (FTE.PA: Quote, Profile, Research) Orange selling the phones in other markets.

The Journal said on Thursday Google had also approached the two biggest U.S. wireless services, AT&T (T.N: Quote, Profile, Research) and Verizon Wireless, in recent months to ask them to sell phones with Google service.

It cited a Verizon Wireless executive saying the company had decided not to integrate Google's Web search tightly into its phones because of Google's advertising revenue-sharing demands. The newspaper said the executive had not commented on a Google phone.

A person familiar with the situation told Reuters that talks between Verizon Wireless, owned by Verizon Communications (VZ.N: Quote, Profile, Research) and Vodafone Group (VOD.L: Quote, Profile, Research), and Google have ended without resulting in an agreement.

Representatives for Verizon Wireless, T-Mobile and AT&T declined to comment.

T-Mobile and Vodafone already incorporate Google search in their mobile Web service in Europe, while AT&T offers it as one of several Web search options.

"We talk to a lot of different companies and we're not going to comment on our discussions with any of them," said Mark Siegel, an AT&T spokesman.