Nov. 5 (Bloomberg) -- Google Inc., seeking to expand beyond the Web, said it plans to create a mobile phone operating system for handsets sold by Sprint Nextel Corp. and T-Mobile USA Inc.
Google, owner of the world's most popular Internet search engine, today announced the 34-member Open Handset Alliance, which includes Sprint, T-Mobile and phone makers Motorola Inc. and Samsung Electronics Co.
The agreement would boost Google's advertising revenue from mobile phones, which outsold personal computers by more than 4 to 1 last year. For phone companies, the accord may bolster sales of online services and give them an edge over larger rival AT&T Inc., the exclusive U.S. carrier for Apple Inc.'s iPhone.
``While it might be some time before mobile-phone advertising revenue begins to be meaningful for Google, it certainly says that they have worked successfully to put the foundations for such growth in place,'' said David Garrity, director of research at Dinosaur Securities Inc. in New York, who advises buying Google's shares.
Spending on mobile-phone ads may jump to $11.4 billion worldwide by 2011 from $2.17 billion today, according to Informa Plc, a London-based research firm. Google, in Mountain View, California, gets 99 percent of its more than $10 billion in annual sales from advertising, mostly by selling text links next to search results on its own pages and partner sites.
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