Google is planning to release a new mobile operating system later this year that will be based on open source Linux. Google has built prototype phones to test the operating system on, but will not actually manufacture, market and sell any handsets. Not only will it produce an operating system, but it will also develop mobile-friendly versions of its existing software products, including a new web browser. Google will license the operating system for free, but advertising will tie into all of Google’s mobile services. The OS won’t ship on any handsets until 2008.