Could the Google phone be the death of the newly released Android?? The HTC-built device called the Nexus One was handed out to Google employees last week in the “mobile lab”. The rumor is that these phones would be sold unlocked directly to consumers.

The million dollar question is: How would Google bring an unlocked phone to market? There are really only three ways to sell phones.

1. License spectrum from a carrier and become a mobile virtual network operator or MVNO — a business model that time has proven to be a failure.

2. Of course, is to partner with carriers and offer phones at discounted prices through carrier subsidies, which is more or less the case with every successful device on the US market today.

3. Sell unlocked devices at full retail price that can be used by consumers on the network of the their choice. This is allegedly the model Google will be using to sell the Nexus One.

Stay tuned… we’ll see when and if the phone comes out to the market anytime soon.