The first phone to use Google's Android software was launched today designed to improve the speed and quality of using the internet on mobile handsets.
The much-anticipated T-Mobile G1 will go head to head with Apple's iPhone, the Blackberry and other smartphones from makers including Nokia.
The gadget has a keyboard behind a slide-out touchscreen to allow users easy navigation around the device and is being touted as a phone with the capability of a hand-held computer.
It provides access to Android Market, which allows third party companies to offer a raft of applications allowing users to customise their phone.
It will be available from November on the T-Mobile network and will be free on price plans from £40 a month.
Other manufacturers are expected to produce their own Google phones over the next 12 months.
T-Mobile chief executive Jim Hyde said: "The T-Mobile G1 is the first device to run on the Android platform, giving customers unprecedented ability to make their mobile work just the way they want.
"Today we increasingly use many different ways to keep in touch, from simple calls and email to instant messaging and status updates on social networks. The T-Mobile G1 is a unique mobile designed with the new possibilities of online communication in mind.
"Customers can tailor their phones with access to a variety of innovative applications. We're thrilled to offer this exciting breakthrough that gives people unlimited freedom to communicate they way they want to. It will change the way we use our mobiles."
The phone makes use of Google Maps, instant messaging through Google Talk as well as high-speed internet browsing and a 3-megapixel camera.
Users will be able to use the phone's 3G and wi-fi connection to upload and post pictures and download music and videos.
Google announced Android plans late last year and analysts reacted by saying it could potentially transform the mobile telephone market by providing service supported by advertising instead of subscription fees.
Google announced a 34-member group called the Open Handset Alliance in November to develop Android, including China Mobile, HTC, Intel, Motorola, Qualcomm, T-Mobile, Telefonica, LG and eBay.
Michael Brook, editor of the T3 gadget magazine, said the phone was a departure from models by Apple and other makers.
He said: "The exciting thing about T-Mobile's G1 is that it runs on Google's Android operating system. Since Android is an open platform, it can be used for free.
"While Apple's iPhone is the pinnacle of technology design, Google is attempting to change the way users can interact with their mobile phones.
"Development communities will be important to the G1, much like they are to the iPhone 3G, and it'll be interesting to see how the phone fares with today's tech-savvy user."
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