Sprint to Sell Its First Google Android Phone

By The Wall Street Journal

Sprint Nextel Corp. said Thursday that it will sell its first phone running Google Inc.'s Android software in October, giving the Internet company a larger foothold in the mobile world.

Consumers have been slow to embrace the mobile platform, which has been available only through T-Mobile USA. With Sprint, Google has a larger subscriber base to potentially tap.

The decision by Sprint will "help Android become a more mainstream operating system," said Roger Entner, a telecommunications analyst at Nielson & Co.

Sprint, meanwhile, needs as many weapons as it can get to fend off other carriers that want to poach its subscribers. The company, based in Overland Park, Kan., continues to lose its most valuable subscribers. But over the past few months, Sprint has released a string of high-profile devices including the Palm Inc., in the hopes of finding a match for the Apple Inc. iPhone.

Enter the HTC Corp. Hero. The Android-based smart phone uses HTC's own customized user interface, called Sense, and is regarded by the company as its flagship product. The device has been available overseas, but Sprint will be the first carrier to offer it in the U.S.

The device will sell for $179.99 after a $100 mail-in rebate and two-year service contract. It is to be available in stores on Oct. 11.

The Hero marks the first in a wave of Android devices expected to hit the market in the next few months. Motorola Inc. and Samsung Electronics Co. are expected to unveil Android-based phones in September. But because so many Android phones are expected to hit the market, few are expected to post iPhone-like numbers, analysts say.

Google is pushing the open-source mobile operating system to handset manufacturers in a bid to expand its presence in the mobile sector and generate mobile advertising revenue. The Internet company hopes the Android phones generate mobile advertising revenue.

But the first Google phone, dubbed the G1, didn't turn many heads, and the follow-up device, the MyTouch 3G, was just one of many high-end smart phones launched during the past few months. Both devices were made by HTC and sold through Deutsche Telekom AG's T-Mobile.

Sprint is the latest carrier to join the Android platform. Verizon Wireless, a joint venture between Verizon Communications Inc. and Vodafone Group PLC, has committed to carrying Android phones before the end of the year. While AT&T Inc. has remained mum, industry observers say it will be pressured to follow suit.