The new phone powered by Google is set to launch today, ready to face off against Apple’s IPhone in the run up to Christmas. The phone, which is made by HTC, runs Google’s Android operating system, and will be available in the UK on the T-Mobile network. Prices and contract details have yet to be announced, but it is thought the device, which is based on HTC’s Dream handset, is likely to be named the G1.

The phone is expected to have as built-in GPS (global positioning system), a tilt sensor for gaming, and a camera. It is thought it will be able to run Google’s range of web applications, including Gmail, Google Docs and Google Maps, and will likely also feature Google’s new web browser, Chrome.

The arrival of the first G-phone is the opening round in the battle to create and control the software that will run the next generation of mobile phone that will be able to access the internet.