Rumours are rife on the web that internet search engine Google is moving further into the telecommunications market than at first thought.

According to New York newspaper the Post-Standard, a number of "bloggers with some credibility" have stated that mobile phone software currently in development is set to be revealed soon.

The newspaper states that it has been suggested that Google announcement, expected to be sometime in early September, could be related to what some are calling the ‘GPhone’.

Earlier this month the Wall Street Journal added to the rumours in an article that said that the company had been considering a number of handset designs.

"[Google] has developed prototype handsets, made overtures to operators such as T-Mobile USA and Verizon Wireless, and talked over technical specifications with phone manufacturers," the article claimed.

Google’s vice president of search products and user experience, Marissa Mayer, revealed earlier this month that the company had a number of applications ready for use with Apple’s new iPhone.

Speaking at the Search Engine Strategies conference in San Jose she demonstrated Google’s voice-activated directory service Goog 411 and said the company’s mobile phone applications were doing well.

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