Why Google Needs Its Own Phone

By now, you've heard the hubbub. Google (Nasdaq: GOOG) is preparing its own smartphone to challenge Apple (Nasdaq: AAPL), Palm, Research In Motion (Nasdaq: RIMM), and -- oh, the horror! -- Motorola (NYSE: MOT), a partner with Google. The new Nexus One, as it's known, is presumably slated to be sold through Google's web site, beginning in January.

Verizon (NYSE: VZ) executives probably hated this idea when they first heard it. Why? Control. Google plans to relinquish none, according to reports published by The Wall Street Journal. This won't be Droid 2.0.

Carriers just aren't part of the plan, though T-Mobile subscribers may get a discount on the Nexus One if The Big G and Deutsche Telekom (NYSE: DT) reach an accord. The two companies are negotiating now, the Journal reports.