Internet search engine giant Google is branching out into the mobile phone industry, with a new phone due out in the next two weeks. Codenamed ‘Dream’ it will be available in America and the UK exclusively through T Mobile. The phone will be will be made my Taiwanese manufacturer HTC and will be the first phone to use Google’s Android software.

The Android browser is built on the same technology as the new Google Chrome browser but designed for smaller screens. Google is under pressure to deliver a product that will challenge Apple’s hugely hyped iPhone 3G. However, Google’s product is likely to develop significantly after its launch.

The company said the Android platform will be open-source, which will encourage innovation by allowing outside software developers to tinker with the system and create better mobile programmes and services.

The mobile chief was co-founder and former CEO of Danger Inc, which built the T-Mobile Sidekick, a pioneering web phone with a flip-out keyboard. Industry experts believe the Dream phone will use a similar design.

Google hopes the Android platform will drive even more mobile web surfing than the iPhone, which has seen web usage rocket in comparison with other phones. T-Mobile is planning to launch the phone in New York on September 23! source