Search giant Google purchased VoIP Specialist Gizmo5 earlier this month, and now rumour has it that the company plans to launch a VoIP-enabled smartphone in the US, early next year.
The Google phone is expected to be faster than the Apple iPhone, courtesy of a powerful Qualcomm processor, and a large touchscreen and sleek design are on the cards.
The phone is likely to support WiMax, since Google is an investor in WiMax provider Clearwire.
Google was believed to have paid around $30 million for Gizmo5, which offers services similar to Skype.

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