Google-Phone.com reported that Google does not deny or admit to the existence of Google phone prototypes being floated around to wireless operators such as T-Mobile USA, AT&T and Verizon Wireless. According to the same sources close to this matter, Google hasn’t been too shy about sharing specs of the phones to phone manufacturers.

The Google phone project currently consists of creating numerous prototype phones and software, costing in the hundreds of millions of dollars. Much of the development work is being conducted at a facility in Boston, and is centred on working on sophisticated new Web browser technology for cellphones.

People who have seen Google’s prototype devices say they aren’t as revolutionary as the iPhone. One was likened to a slim Nokia Corp. phone with a keyboard that slides out. Another phone format presented by Google looked more like a Treo or a BlackBerry. It’s not clear which manufacturers might build Google wireless devices, though people familiar with the project say LG Electronics Co. of South Korea is one company that has held talks with Google. Google has already lined up a series of hardware component and software partners and signaled to carriers that it’s open to various degrees of cooperation on their part, the people say.

LG Electronics is one of many partners Google worked with to developed prototype phones, while carrier partners in Europe consist of T-Mobile and Orange. It’s also speculated that Verizon rejected Google’s plans in the US because they wanted shared revenue. HTC, a Taiwanese company, is expected to design a Linux-based phone for launch sometime in the first quarter of 2008. Google seemed to be generous enough to waive licensing fees while it has suggested the phones could carry the Google brand alongside the brand of the operator or leave it out.