Gphone no its Android

Despite all the rumours going around Google is not launching a single Gphone but rather an open source platform called Android for phones. Google has announced the Open Handset Alliance to create an open platform (to be called Android) for a Linux phone that can run mobile Google apps and others. Official Google Blog: Where's my Gphone?
Google says

Android will deliver a complete set of software for mobile devices: an operating system, middleware and key mobile applications.With devices built on the Android Platform, users will be able to fully tailor the phone to their interests. They can swap out the phone's homescreen, the style of the dialer, or any of the applications. They can even instruct their phones to use their favorite photo viewing application to handle the viewing of all photos.

The 34 partners include T-Mobile, Sprint Nextel, NTT Docomo, China Mobile, Telefonica, Telecom Italia, Motorola, Samsung, HTC, Qualcomm, Intel, and Google itself no sign of Airtel as some rumours had said. This is a second open source platform for google after opensocial platform for social networks .Here is a video introducing Android