Android is the software platform used by the Google phone (commercially released as the G1). Android is open source software, and it allows anyone to created software that can run in the Google smart phone.
Until now, however, developers had to leave in the same market where the Google phone was sold in order to have one. Moreover, the phone sold commercially is locked with features required by carriers.
Google is now allowing developers to have their own unlocked Google phone, which can be used to create software more easily than what as permitted by the commercial version.
This development phone also provides access to developers living in countries without commercial carriers for the Google phone.
For more information on this program, check the recent post at Devices for Developers - Android