Click on the post title to read more.
The Times Online states
Speculation is mounting that Google may release its own handset in 2010 to go head-to-head with Apple's iPhone in the mobile phone market. The search giant has confirmed that selected employees are testing a new device, but some analysts are sceptical that a ‘Google Phone’ is imminent
There are other sources online that state Google will sell the device directly, bypassing operator subsidies. There are other sources that say that the phone will be sold like the Droid - subsidized. Some say it'll be sold with T-Mobile, but no one really knows. Right now, all Google says is that it's having it's own dogfood.
Either way, I wouldn't mind having a test copy. It certainly looks delicious - for dogfood, that is.
You can check out some of the leaked pictures on the internet.