taoman1 writes "Today Google showed off a ad-supported cellphone that the company plans to offer for free to interested parties. The product could reach the marketplace within a year, and will offer Google search, email, and a web browser. 'The move would echo another recent product launched by a phone industry outsider, Apple Inc.'s iPhone. But Google's product would draw its revenue from a sharply different source, relying on commercial advertising dollars instead of the sticker price of at least US$499 for an iPhone and $60 per month for the AT&T Inc. service plan. Negotiating the fairest way to split those advertising revenues with service providers could be a big hurdle for Google, one ****yst said. Another problem is the potential that consumers could be scared off by the prospect of listening to advertisements before being able to make phone calls, said Jeff Kagan, a wireless and telecommunications industry ****yst in Atlanta.'"
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