Google's 3-G compatible smartphone Nexus One, the Internet search and advertising giant's bid to expand its Web brand in the thriving mobile area also, will ring in the New year at its unveiling Tuesday.

Already, Google's Android mobile operating system featuring a number of phones like T-Mobile's G1 END-2008 and the Droid from Motorola recently, has gained a foothold in the market.

However, HTC, a Taiwanese handset maker has designed the Nexus One, with Google selling the Google branded phone sold directly to consumers, without any ties to any one telecom carrier.

For example, AT&T is the exclusive seller for Apple's popular iPhone in the United States; however, purchasers of the Google phone will have the choice of opting for their choice of wireless carrier.

The 'unlocked' Nexus One i.e. it is not tied to one specific carrier will come at a cost of $530 or $180 along with a two year service agreement with Germany's Deutsche Telekom AG subsidiary - T-Mobile.

So far, Google has not openly confirmed its plans to compete in the fast-growing smartphone market. However, it is holding a press event Tuesday at it's headquarters in California having invited Agence France-Presse and other media outlets to what is being billed as 'Android press gathering', and which may upstage the annual technology extravaganza i.e. the Consumer Electronics Show opening 7th January in Las Vegas.

There have been mixed reactions to Google's coming into the smartphone market with some wondering whether Google is trying to do an Apple, referring to the iPhone that has enjoyed phenomenal success since its introduction in 2007.

A number of analysts believe Google's November $750-million acquisition of AdMo, a mobile advertising company, is Google's attempt of trying to replicate its Web advertising success in the mobile industry. But, not everyone considers the move a wise one.

So far, Android's share of the US smartphone market at 3.5% is relatively small, however, by 2012 Android-based smartphones will be able to capture 14% of the global market.