The word in the media right now is that Google is preparing to join forces with T-Mobile and HTC in a project that will eventually bring customers a new type of interactive smartphone.

According to a report found in Friday’s issue of The New York Times, the device will feature a touch screen and, more importantly, a slide-out keyboard. The phone is expected to use Google's Android software; users will be given the chance to download whatever new applications they like.

T-Mobile and Google confirmed the fact than Android would be finalized this year but no information whatsoever was given away by company officials with regard to the upcoming device. Google said the software has been going through a testing period for several devices. Taiwan based HTC said nothing else but the fact that the phone would be ready until the end of 2008.

Also T-Mobile announced in February that it would introduce Android-based phones in the fourth quarter of 2008.

Apparently, the device, which will be called the G1, will sell for 150 dollars to T-Mobile customers in the first week of launch before it is offered to other customers at a higher price.

The Times said the phone is to be launched just in time for the holiday season; in order for the companies to follow their marketing schedule, the phone will have to get the Federal Communications Commission’s review in order to make sure it meets all the appropriate requirements. If everything goes according to plan, the three companies will make the release announcement sometime in September.

Google’s reasons for starting such a project are the obvious ones: Eric Schmidt, Google Chief Executive Officer told CNBC his company could make more money on mobile than it could on the desktop.