First Google Android phone to cost $199

NEW YORK (Reuters)- The first mobile phone to use Google Inc’s Android mobile operatingsoftware will cost $199, the Wall Street Journal reported on itswebsite on Wednesday.

The phone, which features a slide-out keypad, is being manufacturedby Taiwan’s HTC Corp and will be sold by Deutsche Telekom’s T-MobileUSA unit, which plans to unveil the device at an event in New York onSeptember 23.

AT&T Inc, the only U.S. operator selling Apple Inc’s iPhone, setthe price of the latest version at $199 in July, setting a benchmarkfor smartphones that can surf the Web, manage email and othermultimedia features.

The Journal, citing people familiar with the matter, said T-MobileUSA plans to release new data service plans in conjunction with theGoogle phone that will be "aggressively priced."

Google, HTC and T-Mobile USA declined comment on the pricing for the phone.

(Reporting by Tiffany Wu and Sinead Carew in New York, Eric Auchard and Anupreeta Das in San Francisco; Editing by Anil D’Silva)