This morning Google had a phone open phone conference and made the much anticipated announcement that they along with 33 other companies are starting the Open Handset Alliance. The first and main project of the newly formed alliance is called Android, an open development platform for mobile handsets. The ultimate goal for Google with this is to overall make a better, more usable phone with more features where consumers will benefit, and of course to show advertisements on it where Google will also benefit.

Eric Schmidt was present on the call leading things off, with a number of other captains of industry including Paul Jacobs of Qualcomm, Peter Chou from HTC and Ed Zander from Motorola. The members of the Open Handset Alliance include some big names like Google, HTC, LG, Motorola, Samsung, Sprint, T-Mobile, eBay, Intel, NVIDIA and many others. Some notable big names we’re not seeing on the member list are Microsoft, Apple, AT&T and Verizon.

Google has plans to announce the highly rumored “Google Phone” today which is likely going to be an open platform, Linux-based operation system that runs on mobile phones and is catered to Google applications rather than being an actual specific handset. The latest list of speculated partners for providing the phone include Sprint, Motorola, Samsung and NTT DoCoMo although these are just rumored partners as everyone involved with the deal has kept very quiet about it at Google’s request. Verizon and AT&T have both had talks with Google but reportedly are still leery of the Google-centric plans.

The new Google Phone system is expected to be Linux based with the open source Java development platform laid on top with tools that Google would “give away” to developers to allow them to openly create applications to run on the G-Phone’s platform. The phone has is also being rumored to provide internet access at speeds as fast as you might find on your home computer, but all navigation would be through Google, of course.