"This is going to bring the Internet into cell phones in a very cool way," said Andy Rubin of Google's director of mobile platforms and originator of the Android OS that underpins their mobile strategy.

The company is basically giving away for free that which Microsoft wants you to pay for.

Windows Mobile runs on millions of phones, PDAs, SatNavs, and the like -- but they demand a license fee from the manufacturer, which the consumer ends up paying.

Google's Android however will be free of license fees -- and unlike Windows Mobile, it will be 'open source.'

This means that anyone will be able to access the source code that makes up the software -- meaning that it can be endlessly improved by anyone that chooses to do so.

Android's open nature will also make it easier for developers and manufacturers to create new applications -- in stark contrast to the relatively closed iPhone made by Apple.

"This is a shot that is going to be heard around the world, but it's just the first shot in what is going to be a very protracted battle in the next frontier of the mobile Web," said Michael Gartenberg, vice president. of industry analysts Jupiter Research.

The company also announced an alliance with over 30 manufacturers -- as well as stalwarts such as Motorola and Samsung, new kids on the block such as China Mobile have also signed up.

"Our vision is that the powerful platform we're unveiling will power thousands of different phone models," said Eric Schmidt, Google's chief executive and Apple board member.

No mention was made of Apple's iPhone -- Schmidt appeared onstage with Steve Jobs when the device was first presented to the public, demonstrating a Google Maps application.

How Google's move to enter the mobile marketplace will affect their relationship with Apple remains unclear -- but they definitely sees mobile devices as vital to their future.

"This partnership will help unleash the potential of mobile technology for billions of users around the world," said Schmidt.