Reportedly called "HTC Dream", the slide-out keypad phone will be sold by Deutsche Telekom's T-Mobile USA unit. It is expected to cost $199, the Wall Street Journal reported on its website on Wednesday.
According to early reports, the Dream will be a HTC Touch-like device with a 3-inch screen, integrated Wi-
Fi, 3G and GPS. The handset isn't expected to be available in stores until next month.
The Journal, citing people familiar with the matter, said T-Mobile USA plans to release new data service plans in conjunction with the Google phone that will be "aggressively priced."
AT&T Inc, the only U.S. operator selling Apple's iPhone, set the price of the latest version at $199 in July, setting a benchmark for smartphones that can surf the Web, manage email and other multimedia features.
Google is counting on the software, announced last November, to help sell more advertising by encouraging more people to use its Internet search engine and other services while they are away from the office or home.