Android is an open source free operating system platform for mobile phones, it is being developed by Google and The Open Handset Alliance, a group of more than 30 technology and mobile companies.

Android will deliver a complete set of software for mobile devices: an operating system, middleware and key mobile applications, the idea is to help developers get started developing new mobile applications that will utilize the full functionality of mobile phones and will interact with each other through a rich graphical interface (including the mobile phone's internal GPS). By offering its application and services suite as a part of Android, Google is trying to extend its dominant online position to wireless.

For example, this will allow your calendar, address book and map applications to fully-interact: your phone will remind you when its friend’s birthday, will display a map of his home address with the nearest gift shops, and you will be able to purchase a gift with the push of a button.

Free access to GPS is a key feature of Android. Currently mobile carriers like Verizon lock the GPS in the handsets they sell in order to offer location-based services for a monthly fee (Verizon's VZ Navigator). With a phone running Android the same functionality would be free.

Google competes with other mobile operating systems (OS) like Nokia's Symbian, Microsoft's Windows Mobile, Palm, RIM and Apple in an already crowded Smartphone OS market; Google’s advantage is that Android is an open access system, while all other vendors lock their systems.
For years, wireless service providers have blocked Google from accessing their networks and Google is fighting back. Recently it bid on wireless spectrum with the intent of becoming a wireless provider, their strategy was not to win, but to put pressure on providers to open their networks and to allow the use of open systems such as Android.

Already there are signs that wireless carriers are warming up to open access on their networks. All major carriers have signed up to the Open Handset Alliance, AT&T has not officially joined yet, but says it "ok" with it. Google's efforts have had an effect on the wireless industry: most notably - Verizon Wireless, which is known for keeping its network locked, announced its Open Development Initiative promising ‘Any Apps, Any Device’ to its customers.

To learn more about Android see the video of Sergei Brin, Google’s co-founder, introducing Android: