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Google announced earlier that the first Over-the-Air Update for the Nexus One will begin later today, with most phones expected to receive the update before the end of this week.

Can’t wait for the OTA-Update? Feeling adventurous? Click here for instructions to install the update in minutes via USB.

Many people have been anxiously waiting for this update, hoping that it will fix the 3G connectivity problems widely reported on Google’s support forum and shown here in a previous post.

Here is Google’s statement regarding 3G connectivity:

3G connectivity: we will provide a general fix to help improve 3G connectivity on some Nexus One phones

Google also added these additional features to the update, with pinch-to-zoom multi-touch probably being the most exciting addition:

Google Goggles: this mobile application will now be available directly on your device by launching it from your All Apps menu. Just use your Nexus One camera to start searching the web

Google Maps: the Maps application with be updated to a new version, Google Maps 3.4, which will include:

• Starred items synchronized with maps.google.com – access your favorite places from your phone or computer
• Search suggestions from your personal maps.google.com history – makes it easy to search for places you’ve searched for before
• Night mode in Google Maps Navigation – automatically changes your screen at night for easier viewing and driving

Pinch-to-zoom functionality: devices will now include a new pinch-to-zoom mechanism in the phone’s Browser, Gallery and Maps applications

I’ve been using the Nexus One on t-mobile for a few days now, and while a LOVE this phone overall, I have not been impressed with its 3G performance.

Metro-Boston and surrounding suburbs supposedly have very good 3G coverage, at least according to t-mobile’s map, so I was hopeful being spoiled by Verizon’s excellent network performance and coverage. I noticed right away that the phone kept switching networks and didn’t seem to hold onto the 3G signal very well, regardless of my location.

A quick check of the Google support forum revealed that a number of people are experiencing the same problem.

It’s hard to tell what is causing this, and if this is a hardware or a software problem. I did notice one thing though. My phone is connected to 3G in my house and I can use data services at 3G speeds as long as I keep it on my desk. As soon as I pick-up the phone and hold it in my hand, 3G disconnects and the phone falls back to Edge.

Here’s a short video:

Update: Apparently there is a configuration screen that allows you to select network preferences. Some people suggest that forcing 3G (pick WCDMA only) will remedy the problem. You can get to the configuration screen by simply dialing the following number *#*#4636#*#*. Proceed at your own risk. I tried different settings and did not notice any improvement.

Update2 – From the T-Mobile Forum: Google and T-Mobile are investigating this issue and hope to have more information for you soon. We understand your concerns and appreciate your patience.

The Google online store for the Nexus One went live during the Google press event, today.  The phone is sold and shipped by Google and you need to create a Google checkout account to buy one. At this time, only the unlocked version for $529+tax is available.

Update: The T-Mobile subsidized version is now also available for $179 with a 2 year $79/month contract.

Update1: The Nexus One for Verizon will not be a [dual mode CDMA/] GSM device, so it will not be compatible with T-Mobile, AT&T, or other GSM networks (e.g. Europe or pretty much the rest of the world).

Gizmodo got their hands on the long awaited pricing details for the Nexus One.

Sorry, no love from Google – they are not offering the phone at cost as some had speculated.

So, it’s $530 unlocked or $180 on a two year plan with T-Mobile. There seems to be only one plan for $79.99/month and lots of other small print to consider.

As previously rumored, January 5 is an important date for Android and the Google Phone.  The company has scheduled a press conference for next Tuesday.

With the launch of the first Android-powered device just over a year ago, we’ve seen how a powerful, open platform can spur mobile product innovation. And this is just the beginning of what’s possible.

TmoNews reports that T-Mobile “officially” confirms the Google phone on its intranet website.

Google with support from T-Mobile, is scheduled to launch a new Android device in early January.  The Google Android phone will be sold solely by Google via the web. Support for this device including troubleshooting and exchanges will be managed by Google and HTC. T-Mobile will offer service support, including billing, coverage, features and rate plans.

So it looks semi-official: Google will be selling and servicing its own phone.

The web has been abuzz since last Friday when the long rumored Google phone surfaced as hundreds of Google employees received a new HTC Android phone, called the Nexus One (a reference to the movie Blade Runner and Philip Dick’s novel).

Google VP Mario Queiroz, announced the phone as a dogfooding diet for the holidays on the Google Mobile Blog:

At Google, we are constantly experimenting with new products and technologies, and often ask employees to test these products for quick feedback and suggestions for improvements in a process we call dogfooding (from “eating your own dogfood”). Well this holiday season, we are taking dogfooding to a new level.

We recently came up with the concept of a mobile lab, which is a device that combines innovative hardware from a partner with software that runs on Android to experiment with new mobile features and capabilities, and we shared this device with Google employees across the globe. This means they get to test out a new technology and help improve it.

Unfortunately, because dogfooding is a process exclusively for Google employees, we cannot share specific product details. We hope to share more after our dogfood diet.

Google staffers have been discouraged to discuss technical specs, but the phone seems to closely resemble the much rumored and anticipated HTC Dragon/Passion.

This “field test” of the Nexus One blows the doors wide open to much speculation and 2010 will be an exciting year for Android for sure. Here are some of the latest rumors:

• Google is planning to sell this phone unlocked online and via retail channel, possibly Best Buy.
• This is a GSM phone and should run on either AT&T or T-Mobile – however there is some question about what GSM frequencies are supported.
• Runs Android 2.1
• Expected to launch in early 2010, as early as January.

One of the big open questions is: Where is Big Red and does this squash the Passion on Verizon?

Photo credit: Cory O’Brien