http://www.engadget.com/2007/03/15/google-exec-confirms-phone-in-the-labs/

"Isabel Aguilera, Google's chief executive in Spain and Portugal, has admitted that the searchmeisters have some mobile goodness in the works but appeared to play down the project"

"Google is apparently working on an interesting ‘Google Phone’ – which will similarly use the network operators as nothing more than “dumb pipes“.

http://www.robinontech.com/2007/03/10/mobile-operators-as-dumb-pipes/

This is going to put everyone into a headspin. Google has finally come out and officially spilled the beans, proclaiming that they are, in fact, working on a GPhone. The trouble with this announcement is that it wasn't the big extravagant event we were hoping it would be – the iPhone unveiling comes to mind – and what's more, it was CEO Isabel Aguilera, CEO of Google Spain and Portugal, that made the announcement. No, I don't think she has any relationship to the genie in the bottle.

It wasn't even an announcement by itself. As part of her talk, Aguilera mentioned 18 other projects which may or may not be related to the Google phone.

Well, it's been "confirmed" in a sense, but I'd still take this "announcement" with a grain of salt.