“Integral to this agreement is a commitment by the companies to devote substantial resources to accelerate delivery of leading-edge innovation that will put unique applications in the hands of consumers quickly,” the companies said in a joint release. “The two industry leaders will create, market and distribute products and services, with Verizon Wireless also contributing the breadth of its nationwide distribution channels. Consumers will be able to purchase products resulting from the collaboration in Verizon Wireless retail and online stores.”

The first new phones are expected at market within weeks. Two will be released before the end of the year and they will, according to Verizon Wireless CEO Lowell McAdam, support Google Voice. They’ll also come with Google’s (GOOG) Android Market preinstalled. So Verizon (VZ) is not favoring its own app store here. There will apparently be netbooks as well, though the companies haven’t yet said when.

During a conference call to discuss the announcement, Google CEO Eric Schmidt applauded Verizon’s “openness,” saying it was “frankly, enormously surprising, given the history and the old-line nature of telcos….In Verizon, somehow, the leadership has decided to embrace a very different philosophy, which works very, very well with the Internet.” Schmidt didn’t go into specifics beyond that, but presumably he was referring to Verizon’s willingness to allow Google Voice on its phones–something Apple (AAPL) hasn’t yet done with the iPhone despite continuing controversy.

Asked during the same call if Verizon would allow Google Voice, Verizon Wireless CEO Lowell McAdam said it would. “Either you have an open device or not,” he said. “This will be open.”

The deal is potentially a big one for Google. Verizon serves some 87 million customers. Putting some slick Android phones in front of them could do much to bolster Google’s standing in the wireless market.

In remarks following his keynote address at the CTIA Wireless IT and Entertainment 2007 show yesterday in San Francisco, Microsoft CEO Steve Ballmer said the company won’t buy into the telecommunications market. “No, we don’t have plans to participate in the spectrum auction,” said Ballmer. “We may be broader in what we do than any company, but we have a core competency. And we think the telecom industry has a core competency. It takes a real expertise to set up networks, to invest in capital expenditures, to provide customer service 24/7–that is a core competency. What would it buy us to own a piece of the spectrum? It would probably alienate us.”

That said, Microsoft is still intent on powering the mobile revolution. It just plans to do it with software–specifically a mobile platform that spans both the enterprise and consumer markets. “Consumers will want phones that span all life personas: work life, personal life, life with family and friends,” Ballmer said. “People do not want to pull out multiple devices–that is not how we drive critical mass. People want phones to be general-purpose devices to support them in work and life. That’s incredibly, incredibly important. … We have to think about the phone as a universal remote control for your life–your business life as well as your personal life.”

Assuming the company ever gets the device to market. Because, in case you hadn’t already heard, Google reportedly hasn’t yet decided on the phone’s specifications, operating system or manufacturer.