The Federal Communications Commission has approved the first Android-based phone – but that may not be enough to get the phone on the market by the holidays, observers say.

Last week, bloggers were speculating that T-Mobile could introduce the phone, which is being built by Taiwanese manufacturer HTC, as early as Sept. 17, while the FCC documents suggest a release date closer to Nov. 10. Either way, the introduction would be a significant milestone for the Google-backed Android project, which aims to create an open-source operating system for phones but has not yet produced a commercial product.

But can Google, HTC and T-Mobile really deliver a blockbuster product by then?

Several industry watchers contacted by Wired.com think it is going to be a challenge.

The worst thing Google can do is to rush a “half-baked product,” says Jack Gold, an analyst with J. Gold Associates.

And even Google has recently admitted that the operating system is not ready for prime time.

At the LinuxWorld conference in San Francisco earlier this month, Eric Chu, Google’s mobile platform program manager, said the core operating system was only about 80 percent complete.

That means Google has just days to complete the OS, release a new software developer kit, and get it into the hands of phone manufacturers, especially if it wants to have the phone out in the market in the next two months, says Gold.

Still in its first version, Android will undoubtedly need a lot of testing. And while Google employees are already part of the testing process, there may not be enough time to iron out all the glitches before Nov. 10.

What's more, sources within the Googleplex suggest the phone hasn't entirely wowed users, especially when compared with Apple's iPhone.

Meanwhile, T-Mobile also needs to test the phone and it is unclear if the next few weeks will be enough for the company to finish its own carrier certification process, according to Gold and Trip Chowdhry, an analyst with Global Equities Research.

Chowdhry adds that Google will also need time to build up buzz on the marketing front, adding to the time pressure.

So will the next few weeks be enough for Google, HTC and T-Mobile?

Gold believes the trio could announce the new Android-powered phone but make it available in retail shelves a few weeks later, much like what Apple did with the iPhone. That would enable them to offer the device in the fourth quarter, as promised, while buying themselves a few more weeks to test it and get production in line.

Even then, it is likely that Google, HTC and T-Mobile could roll out a basic phone, without all the flexibility of a more mature operating system, says Ross Rubin, director of industry analysis at the NPD Group.

Even if the HTC Dream, as the phone is likely to be called, hits the market on time, it might not be good enough to get users excited, says Gold.

"Anyone can push a device out quickly," he says. "But the question is will it be robust enough."

Google has much at stake and the company needs to get it right the first time around. Going up against Apple's iPhone, it may not get too many chances, especially if it botches the launch.

Photo: FCC filing of HTC Dream

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