Google is reportedly working on a mobile handset to speed up the mobile ad distribution process, with its service at the helm.

What’s been dubbed the Google Phone or the GPhone, may be the provider of a free, ad-supported mobile service. The company is working on a new web browser for cell phones, and is wanting to put its service at the forefront of people using handheld devices. While Google has already extended its ads services from the web to print and radio ads, its mobile advertising offering has already been established, along with its search capabilities and GMail integration, among other applications.

Considering the issues it’s had regarding mobile network providers, however, it would appear that Google is anxious to dominate the mobile industry on a number of levels, acting independently of any particular mobile carrier. Creating its own handset with mobile browsing functionality would put other companies at the mercy of Google, on several levels, when it comes to the potential users of its handset, which would hopefully be offered through several wireless companies, from AT&T to Verizon.

If someone were to offer a free, ad-supported mobile option, Google would be among the most likely to succeed. It’s a delicate business model that requires existing relationships with several aspects of the mobile and advertising community, and that’s something Google has. Blyk is one company that’s been working on a similar offering for some time now, and has not yet reached its goal of launching its service to the public.

In related news, Google is working with Sprint Nextel on a WiMax offering and has also created an Ajax search tool for the iPhone.