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Engadget reported yesterday that the Mountain View, Calif.-based company could be investing millions of dollars into GPhone development.

These rumors may not be completely unfounded. In July, Google said it would bid at least $4.6 billion for wireless spectrum licenses if the FCC put the airwaves (700 MHz range) up for bids. (The 700 MHz range, currently owned by TV broadcasters, will be prime real estate for wireless and digital companies when put on sale in 2009.)

Also, it's rumored that Taiwanese tech manufacturer HTC will manufacture the GPhone. (It seems someone from CrunchGear may have an insider at HTC.) After all, the company's WM-6 model is used with Yahoo! Go.

Mashable is reporting that Google's offering may, in fact, be free and ad-supported. Also, the GPhone wouldn't be tied to any specific provider -- like the iPhone to AT&T -- but that the company would work out deals with all major cell phone providers.

Here's a picture of what the GPhone could look like:

Marketers: Now you have another format to work with. While the iPhone is pretty darn cool, the introduction of a free GPhone could bring your product countless new subscribers. Last week I blogged about Apple's iPhone letdown. For all of you who are trying to figure out what to do with this new device, groundbreaking as it is, think for a second: Who are you trying to reach? The half a million iPhone subscribers or the potentially endless swarm of GPhone users?

It seems that investing in Linux-based apps may be on your to-do list in the coming months.