Engadget has reported that Google would release details this week, speculating that the device would retail for as little as $100 in the US. Elsewhere fevered bloggers have opined that the phone would run a proprietary operating system and that Google is assessing over 20 OEMs to build the device.

Should the reports prove true – Google declines to comment on “rumour and speculation” – it seems safe to assume it would embed the VoIP app Google Talk along with search, maps and email services. This would surely alarm the cellular industry.

Google is already active in mobile thanks to deals with Vodafone, T-Mobile, 3, KDDI and others to preload its search engine on the portal home screen. It has signed similar deals with handset companies including Samsung and LG. It has even expressed interest in buying spectrum in the US.

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