T-Mobile USA Wednesday showed off the second iteration of a smart phone powered by Google Inc. (GOOG), MyTouch 3G, as the struggling wireless carrier attempts to keep pace with other high-profile device launches from its rivals.

T-Mobile, a unit of Deutsche Telekom AG (DT), is feeling the pressure from both sides as the larger national players outdo it with better phones and the pre-paid carriers undercut its monthly plans.

Google's first phone powered by its Android mobile operating system and built by HTC Corp. (2498.TW), the G1, was a rare success for T-Mobile last year - a million units sold between its launch in October to the end of 2008.

Cole Brodman, chief technology officer for T-Mobile, said he expects MyTouch to outsell the G1, citing a broader appeal.

"A vast majority of customers will be new to Android and new to smart phones," he said.

But a lot has changed since the first phone was released. Unlike last year's launch event, Google founders Sergey Brin and Larry Page were nowhere to be found. Handset makers Motorola Inc (MOT) and Samsung Electronics Co. Ltd. (SSNHY), meanwhile, are making Android phones for other carriers.

While aware of the potential competition, Brodman said that the only way for Android to be successful is to have multiple phones on different carriers.

As more Android phones hit the market, Google is expected to be less visible. Brodman said the lack of Google's presence wouldn't affect the launch strategy, and that the Web titan is more focused on the evolution of its platforms and application market.

The MyTouch comes during a busy summer season of phone launches. The Palm Inc. (PALM) Pre and the Apple Inc. (AAPL) iPhone 3GS have already launched, and Research in Motion Ltd.'s (RIMM) Blackberry Tour is set to hit stores later this month.

Android also isn't the newest platform. That honor goes to Palm's WebOS software which was released on the Pre last month.

So how does T-Mobile plan to set itself apart? To begin, with a better design. The MyTouch is a sleeker phone than the G1, and there is more of a focus on different applications. The Android Marketplace boasts 5,000, although it is still a tenth of the size of Apple Inc.'s (AAPL) App Store.

Mimicking Sprint Nextel Corp.'s (S) Ready Now program, T-Mobile will start "Make It Work," where store representatives will help customers set up their MyTouch phones. The carrier will also release an App Pack to help new subscribers find useful programs.

Along the lines of personalization, T-Mobile will offer custom cases for the device. The phones come packed in a travel case.

Reaction to the product, however, was mixed.

"Basically, it's the G1 without the keyboard," said Avi Greengart, an analyst for Current Analysis. "They're just marketing it differently."

The MyTouch was the result of addressing the criticisms of the G1, said Jason MacKenzie, vice president of marketing for HTC's U.S. business.

The product will hit stores on Aug. 5 and will sell for $199 with a two-year contract, $20 more than the G1.

While it is positioned as the flagship product for the second half, Brodman said more Android phones would be released later this year.

-By Roger Cheng, Dow Jones Newswires; 212-416-2153; Roger.Cheng@dowjones.com