Speculation today hit fever pitch over the possible shape of Google’s next foray into telecoms as a host of blogs carried pictures of what was claimed to be a low-cost, internet enabled handset – the “Gphone”.

The well regarded Engadget site said that Google would make an announcement as soon as next week. Reports said that the Gphone would retail for as little as $100 (£50) when it makes its debut in US.

Other blogs claimed that the phone would be fitted with a proprietary operating system to rival the Symbian platform used by manufacturers including Nokia, the largest mobile maker, and Microsoft’s mobile version of Windows.

CrunchGear, a sister of the Techcrunch site that broke the news of Google’s $1.65 billion acquisition of YouTube last year, said that Google is “currently assessing over 20” phone models from HTC, the Taiwanese manufacturer that has consistently figured in speculation over a possible move into hardware by Google.

It added that the Gphone would come fitted with Google Talk, the company’s voice over internet protocol system, which allows users to make free or cheap calls over the web.

A Google spokesman said the company would not comment “on rumour and speculation”.

Photographs on the web suggested that the handset would be fitted with a touch screen – echoing Apple’s recently launched iPhone.

It was also reported that the Gphone would allow users to surf the web, would come fitted with a version of Google Maps and a global positioning system element, and would be compatible with Gmail, Google’s e-mail system.

Google is said to have shown a prototype to US mobile operators, including AT&T, T-Mobile and Verizon Wireless.

The three largest players in internet services – Google, Yahoo! and Microsoft – are all focused on mobile as a key source of future revenues.

The mobile advertising market is estimated to hit $11 billion (£5.4 billion) by 2011.

Google has already brokered deals with mobile phone companies, including Vodafone, the British operator. Google’s search engine also comes preloaded on handsets made by companies including Samsung and LG.

Yahoo!, which believes that more consumers will eventually access the web through mobile handsets than through computers, this week launched a revamped version of its e-mail service that allows users in the US to send text messages from computers to mobile phones.

Google, also recently expressed interest in placing a $4.6 billion bid for a licence for part of the US airwaves, an asset that could be used to roll out a wireless broadband internet network.

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