Google upgrades Nexus One to work on AT&T’s 3G network in latest swipe at Apple’s iPhone

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Google phone now works on iPhone’s wireless system

SAN FRANCISCO — Google Inc. is making two new versions of its Nexus One phone: one for AT&T Inc.’s network and one for Sprint Nextel Corp.’s.

The first U.S. version of the Nexus One, which Google is promoting as its own “super” phone, was designed for T-Mobile USA’s network. It also worked on AT&T’s older, low-speed data network.

The new AT&T version of the Nexus One, which went on sale Tuesday, works on the same high-speed wireless network as Apple Inc.’s iPhone, putting an increasingly antagonistic Google and Apple on an even more direct collision course in the mobile market.

Apple is aggressively protecting its turf as it tries thwart the Nexus One and several other mobile phone models that rely on Android, a software system designed by Google. In a lawsuit filed this month, Apple alleged HTC Corp. — the maker of the Nexus One and other Android-powered phones — has infringed on its touch-screen patent.

Analysts believe sales of the Nexus One have been modest, but that could improve with more choices of wireless carriers.

BroadPoint.Amtech analyst Benjamin Schachter estimates Google will sell about 125,000 of the phones during the Nexus One’s first three months on the market. Apple has sold about 40 million iPhones since the device’s 2007 debut, including 8.7 million in last year’s final quarter.

Nexus One’s upfront cost can be substantially higher than the iPhone because Google is selling some models without subsidies from wireless carriers to make it easier for consumers to move to other networks.

The unsubsidized version of the Nexus One sells for $529. The iPhone sells for as little as $99 with a two-year commitment to subscribe to AT&T.

Consumers willing to shoulder a two-year contract with T-Mobile can buy a Nexus One for $179.

AT&T has no plans to subsidize the Nexus One although it welcomes all phones compatible with its 3G network, said company spokesman Fletcher Cook.

Sprint did not say when or at what price its version of the Nexus One would be available.

Because Sprint and Verizon Wireless use the same network technologies, the arrival of a Sprint version means a Verizon version could be close behind. Google and Verizon already have a close relationship, and Verizon promotes other phones running Google’s Android software.