Speculations have been roused once more concerning Google's foray into the mobile segment as Reuters and The Wall Street Journal last week reported the search engine giant had invested hundreds of millions for a cellphone project.

The WSJ report also said Google has developed prototype phones and talked over technical specifications with manufacturers including LG Electronics.

Meanwhile, Reuters said its industry tracker Anian last month reported that the search engine giant had engaged Taiwan's High Tech Computer Corp. to design a Linux software-based phone for launch in Q1 2008. The Anian report cited industry sources as saying T-Mobile, owned by Deutsche Telekom, would likely be Google's U.S. partner with France Telecom's Orange selling the phones in other markets.

But Google continued to dodge questions on whether it actually has mobile hardware in the pipeline. In an email response to Reuters, Google said it is "partnering with carriers, manufacturers, and content providers around the world," but gave no further details. It has said wireless was an increasingly important market but it has not announced plans to build a phone.

Reports of Google's cellphone venture have been persistent since early this year, but the company had repeatedly declined to make any confirmation.