Verizon Wireless, Google take on iPhone

NEW YORK Verizon Wireless and Google Inc. are teaming up to tackle the challenge posed by the iPhone, saying they will collaborate closely to create wireless devices that use Google's software.

Verizon Wireless, the largest cellular carrier in the U.S., had already said it would sell phones with Google's Android software. But it put a lot more weight behind that yesterday, pledging to commit "substantial resources" to developing and selling Android phones.

The announcement reflects both companies' belief that they can't expect phone manufacturers and software developers to deliver a hit that can match the iPhone's popularity.

Google CEO Eric Schmidt said in an interview that the company couldn't just release its software and then wait for manufacturers.

"The way you really create a great product is you collaborate at the technical level. That was the pitch from Verizon, and we actually changed our strategy based on that," Schmidt said.

Verizon Wireless expects to launch two Android phones this year, with the first one arriving in a few weeks.

The partnership adds to the momentum behind Android, which is seeing significant interest from carriers and manufacturers. Sales of the few existing Android phones have been small compared to the iPhone, but Google's increasing involvement in wireless led Schmidt to resign from Apple Inc.'s board two months ago. Federal regulators had been investigating whether his dual role made it easier for the technology trailblazers to collude.

Phone manufacturers can use and modify Android freely, and several have announced they're doing so, including Samsung Electronics Co., the largest provider of phones for the U.S. market. That means that if Android takes off, Verizon Wireless won't be dependent on one vendor to deliver its hit phones, like AT&T Inc. has become dependent on Apple and the iPhone.

Verizon Wireless isn't abandoning competing smart-phone platforms such as Microsoft Corp.'s Windows Mobile, Palm Inc.'s webOS or Research in Motion Ltd.'s BlackBerry OS.

Verizon Wireless and Google are on opposite sides of a debate about regulation of the wireless industry, sparked by closer scrutiny from the new administration. Congress and the Federal Communications Commission have questioned handset-exclusivity deals, and the fact that Apple hasn't allowed a particular Google application onto the iPhone.

Verizon Wireless is a joint venture of Verizon Communications Inc. of New York and Vodafone Group PLC of Britain. -- The Associated Press