All the speculations about gPhone should now be concluded. Google has thought bigger than just another iPhone.

Instead of a phone The Open Handset Alliance is developing the first complete, open and free mobile platform – Android. Alongside Google there are more than 29 technology and mobile companies behind it all and most importantly Android is OSS that eliminates any boundaries of application availability for this mobile operating system. This is also the reason why Google has introduced Android Developer Challenge providing $10 million in awards for great apps built on the Android platform.

At this point the platform features 3D rendering, Google Maps™, address book, text messaging and browser which is in fact based on WebKit.

See the demo below:

An Open Handset Alliance Project Android Developer Challenge