The iPhone may have the backing of Steve Jobs, but the one thing it doesn’t have  is The Google behind the scenes.

As the Internet powerhouse continues its quest for world domination, it is getting ready to release its own version of a smart phone. And when it does, there’s no doub that it will be really, really, really smart.

According to reports by CNN Money, The Google has been testing an Android 2.1 smart phone with software it developed. The Google has issued a number of these phones to employees to work out bugs and test the phones’ abilities.

One idea floating out in the ether is the phone would be sold directly to consumers online and not use any of the typical cell phone stores. Additionally, it may not have a typical carrier at all — instead providing its services magically through dilithium crystals or though advanced alien technology. (Many believe that much of The Google was developed from a computer chip found in the arm of the first destroyed cyborg attempting to kill John Conner.)

Of course, the downside to all of this is The Google could create some bad feelings with carriers such as AT&T, which is having a hard enough time keeping up with all of those iPhone users who are seeing their unlimited 3G service continue to stall.

Can The Google do anything better? What do you think?