Google's Nexus One smartphone is presented by Peter Chou, CEO of handset maker HTC. Photo / AP

MOUNTAIN VIEW, California - It's official: Google will sell its own
mobile phone in an effort to protect its online advertising empire as
people increasingly surf the Web on handsets instead of personal
computers.

The phone had been widely anticipated since Google handed out the
device, called the Nexus One, to its own employees three weeks ago.

Consumers will be able to buy the Nexus One for US$179 ($253) if they
commit to a two-year service contract with T-Mobile USA. The phone is
going on sale Tuesday online.

Google also will offer versions of the Nexus One that will give people
the option of selecting the wireless networks of other major carriers.
That's a departure from the way most mobile phones have been sold in
the US

The price of these so-called "unlocked" phones will be US$529.

Verizon Wireless in the US and Vodafone in Europe will begin offering
subsidies on the Nexus One this spring, according to Google executives.

The
Nexus One escalates Google's budding rivalry with former Silicon Valley
ally, Apple , which has sold more than 30 million iPhones in the past 2
1/2 years.

Apple announced a deal to buy mobile advertising service Quattro
Wireless to counter Google's proposed US$750 acquisition of Quattro
rival AdMob.

Google's Nexus One smartphone is presented by Peter Chou, CEO of handset maker HTC. Photo / AP

MOUNTAIN VIEW, California - It's official: Google will sell its own
mobile phone in an effort to protect its online advertising empire as
people increasingly surf the Web on handsets instead of personal
computers.

The phone had been widely anticipated since Google handed out the
device, called the Nexus One, to its own employees three weeks ago.

Consumers will be able to buy the Nexus One for US$179 ($253) if they
commit to a two-year service contract with T-Mobile USA. The phone is
going on sale Tuesday online.

Google also will offer versions of the Nexus One that will give people
the option of selecting the wireless networks of other major carriers.
That's a departure from the way most mobile phones have been sold in
the US

The price of these so-called "unlocked" phones will be US$529.

Verizon Wireless in the US and Vodafone in Europe will begin offering
subsidies on the Nexus One this spring, according to Google executives.

The
Nexus One escalates Google's budding rivalry with former Silicon Valley
ally, Apple , which has sold more than 30 million iPhones in the past 2
1/2 years.

Apple announced a deal to buy mobile advertising service Quattro
Wireless to counter Google's proposed US$750 acquisition of Quattro
rival AdMob.