Telecom says it will launch its first Google Android handset, LG's GW620, for XT later this month, for $699 off contract.

The LG's hero feature is auto-face recognition, with promises to identify friends and automate the process of tagging a person's name to a pic, then uploading it to a social networking site.

Just like that, Google-gate is over. Vodafone says the HTC Magic will be back on sale later today.

In a one line statement, the company says:

“The issue is resolved - stock will be available again in stores and online today.”

Yesterday, spokesman Paul Brislen said a “Vodafone commercial issue” had led to the much-hyped handset being withdrawn from sale.

Google’s Android operating system continues to gather steam.

Samsung has become the first A-list consumer electronics maker to show off a cellphone running on Google’s Android software.

The Korean company - the world’s number two cellphone seller beyond Nokia - will release the Samsung i7500 in Europe in June, and through the US and Asia during the second half of the year.