San Francisco - Google is to launch the first mobile phone running its Android software next week in a joint initiative with T- mobile, the companies said Tuesday.

The open-source Android system is seen as Google's answer to Apple's successful iPhone and as a key initiative in the internet giant's quest to extend its dominance to the mobile web.

Google has worked closely with US carrier T-mobile and Taiwan electronics maker HTC to develop the new phone, which is to be called Dream.

According to The Wall Street Journal, the Dream will have a large touch screen, a swivel-out keypad and a trackball for navigation. The Dream will also feature a built-in 3 megapixel camera, a music player and purpose-built access to Google services like Gmail, Maps, and Search.

The launch announcement gave no pricing details or availability dates. But press reports said that the Dream would go on sale to existing T-mobile customers later this month for 149 dollars, with delivery expected in mid October. (dpa)