Gphone?

What are the folks over at Google (GOOG) up to? It has been rumored that they are in discussions with cell phone service providers and manufactures to produce a gphone (or perhaps a googphone) following in the footprints of the successful iPhone (AAPL) . What is Google planning on doing different? One of the major differentiations would be the service provided. Google may be able to offer free service to consumers who are willing to be berated with advertising. It is no secret that Google is interested in becoming a player in cell phone applications business including Google maps, Google talk, and Gmail. Apple CEO Steve Jobs even approached Google for map applications on the iPhone. Great reads from Webbalert (video blog), Ars Technica , & WSJ.