The N.Y.Times is reporting that T-Mobile will be the first carrier to carry a handset running Google’s Android platform. This phone is being developed and manufactured by HTC and will be coming out before Christmas – possibly even as early as October. The phone, which folks on the net have been calling the “Dream”, will have a touch-screen display and a full slide-out keyboard. A video of a supposed HTC dream handset appeared on YouTube recently – and sources to the NYTimes have confirmed this is indeed the phone coming out for T-Mobile.

Android based handsets (or smartphones) will directly compete against handsets such as the Apple iPhone, Windows Mobile handsets, and Research in Motion BlackBerry devices. Google is making the Android OS free to all companies part of the Open Handset Alliance as it hopes that Android will accelerate its penetration into the mobile market.

T-Mobile’s HTC phone is expected to be the only Android phone available in the U.S. this year. Sprint is also working closely with Google in developing an Android-based handset.

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