It all started as rumors spreading in Twitter. Apparently Google employees were given a phone to test (or “dogfeed,” as the practice is known). The employees started tweeting about how amazing it was and how it can cure cancer, solve world hunger, etc. Okay, I’m just kidding. But we all know how great the new phone is and how Android 2.1 is amazing on it.

Soon, pictures of the new phone started to leak and spread like wildfire. The “Google Phone” is running on HTC hardware and it seems to be an HTC Passion, but without the branding.

Google at first was claiming that the phone was just a mobile lab for their developers to use over the holidays:

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.

Soon it was revealed that the Google Phone is actually called the Nexus One, and it will be sold unlocked. Amazing.

Again, I don’t think I want to use the term iPhone killer. Please, it’s been overdone. But believe me when I say that only Google would have the same brand equity as Apple which would demand the same amount of loyalty. Plus the fact that the Nexus One is unlocked and can be used with any carrier is going to win them a lot of users fed up with AT&T.

Let us wait and see what will happen.

Meanwhile, here’s a video of Nexus One booting up at a less-than-impressive 20 seconds. If Google hopes to beat the iPhone, the Nexus One has got to do better than that.