It has said wireless was an increasingly important market but it has not announced plans to build a phone. It said last week that Sprint Nextel Corp would feature Google services on devices for a new wireless network the No. 3 U.S. mobile service is building.

Google has also developed prototype phones and talked over technical specifications with manufacturers including LG Electronics, The Wall Street Journal said.
Yankee Group has forecast the mobile ad market will more than quadruple to $275 million in 2007 and eventually grow to $2.2 billion in 2010, up from an estimated $60 million in 2006. Some experts are forecasting an even bigger market.