Rumors are already churning about the potential launch of the first Android-based handset later this fall by T-Mobile USA. Along with others, the HTC Dream is rumored to debut with T-Mobile's 3G launch sometime after October. That is if you believe the hype circulating the blogosphere lately.With HTC being a founding member of the Open Handset Alliance, it's apparent they'll be among the first to start producing Android-based handsets, and according to various blogs, the Dream will be the first to sport the new Google operating system using T-Mobile's brand new mobile broadband service.

With T-Mobile being a distant fourth among major carriers in the US, and being behind others in terms of 3G coverage and handset technology, it was time to step up to the plate. They dropped more than $4 billion to buy spectrum in the 2006 Advanced Wireless Service auction to more than double their spectrum offering, and are just finally making use of it to roll out its 3G service. Along with the Dream, it's speculated 3 other high-end 3G devices will launch including the Sony Ericsson Z780 and possibly the Motorola ZINE ZN5.

There haven't been many details about the HTC dream so far, other than prototypes and hype, but according to Tech.Blorge, it'll sport an iPhone-like touch-screen interface and full QWERTY keyboard that'll rotate or swivel out of place when not in use. There've been several videos circulating the net that feature Android demos on an HTC device, and most likely, this is pretty close to what it will look like in production.

While nothing is set in stone, it would make sense T-Mobile would want a gimmick to surround their 3G launch, and the first Android phone to hit the market would do the trick nicely. With AT&T enjoying iPhone success, why shouldn't T-Mobile get the spotlight for once. Delaying the launch for a few months after the 3G iPhone buzz dies down seems like perfect timing to me.