Verizon, Google, Ally on Android Phones

NEW YORK (Reuters) – Verizon Wireless said on Tuesday it will develop and sell mobile phones and services using Google Inc’s Android operating system software.

Google has been pushing into the mobile phone market to replicate the success it has in desktop computers. The ultimate idea is to sell targeted advertising on mobile phones, which many analysts believe is the next big frontier in advertising.

The Verizon Wireless deal is the Android system’s latest with a major U.S. mobile phone company. Others include Sprint Nextel Corp and T-Mobile USA.

Google and Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc, will sell several Android-based devices loaded with applications from both companies and other mobile software developers.

In addition, the family of Android phones, which will be distributed by Verizon Wireless, will come from top handset manufacturers, the companies said.

Taiwan’s HTC already makes Android phones, and Motorola last month introduced the first in a line of cell phone developed in partnership with Google.

Samsung and LG are also expected to make Android handsets.

T-Mobile USA is a unit of Deutsche Telekom.