Ananova:

Google is preparing to take on the biggest names in the telephone industry with the launch of its first mobile phone.

The search engine giant will unveil the phone dubbed the 'G1' in a press conference in New York today.

No images have been released of the new mobile, which will be available exclusively on T-Mobile in the UK.

The release is expected to spark major competition ahead of the lucrative Christmas shopping season.

The G1, priced around £100, is expected to compete directly with Apple's iPhone 8gb 3G.

Google have been very secretive about their first hardware product.

The specifications are yet to be confirmed, but it is widely rumoured that the phone - which is to be manufactured by Taiwanese firm HTC - will have a large touchscreen as well as a fold-out Qwerty keypad.

It is also expected to contain a GPS chip, enabling satellite navigation using Google maps.

A large touchscreen with vibrating feedback, WiFi support and a 3.0 megapixel camera are also rumoured to be featured.

The phone will run on Google Android, a mobile operating system that integrates with the web giant's products.

These are likely to include Gmail, Google Docs, Google Maps, GChat and Google's new web browser, Chrome.

The GPS functionality is expected to give users location-based services, such as restaurant reviews and photos of the surrounding area.

Blogs across the web predict the phone will be based on the HTC 'Dream' handset and will be available in grey and black.