Chris Laddish looks over his new T-Mobile G1 with Google phone in San Francisco, Tuesday, Oct. 21, 2008. (AP Photo/Jeff Chiu)

NEW YORK  –  Google is jumping into the mobile phone business with its new G1 phone. The G1 is available starting Wednesday for $179 with a two-year contract from T-Mobile.

The new gadget features a touch screen, slide-out keyboard and a trackball.

This alternative to Apple’s iPhone is the first cell phone powered by Google’s Android operating system.

The launch became official Wednesday at T-Mobile’s nearly 100 retail stores across the country, but for a limited period Tuesday night, a special promotion brought about 200 customers store in downtown San Francisco.

T-Mobile is headquartered in Bellevue, Wash., just outside Seattle.