Device Arena

Google Inc. is in advanced talks with two top U.S. cellphone operators, Verizon Wireless and Sprint Nextel Corp., about selling handsets tailored to its new mobile-phone operating system, people familiar with the matter said.

Deals with the carriers would represent a major breakthrough for the Internet search giant, which until now has encountered wariness from some quarters of the wireless industry about its mobile-phone plans. Google shares crossed $700 Wednesday on the Nasdaq Stock Market. The milestone is a fresh intraday high for the company, after it passed $600 for the first time only three weeks ago.

Within two weeks, Google is expected to announce new software and services that handset makers could use to build customized Google-powered phones. The company needs wireless operators to sign on to the project in order to get its mobile devices in front of consumers by the middle of next year. Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC, and Sprint Nextel are both in advanced discussions with Google, the people familiar with the talks said.

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