The rumor says that Hugh Bradlow, Chief Technology Officer for Telstra, has told senior mobile staff at Telstra the new device is a "real breakthrough, a game-changer that will put pressure on Samsung and Apple". It goes on to say that sources at Motorola have said that the device:
Here's the trouble we have with this information: first, Telstra has been known to feed the hype machine, and so isn't the most reliable source. Second, the quote from the Motorola source is nothing but fancy marketing-speak for saying that the device is running the newest version of Android (as all Google phones do at launch). Motorola may be "separately run", but the X Phone will still be a Google device just like any Nexus (with the exception of the Verizon Galaxy Nexus, perhaps). The X Phone will more than likely launch Android 5.0 Key Lime Pie, and that's the real focus of the Motorola quote, not the hardware.
Either way, we're excited to see what Google unveils with the X Phone. The rumors continue to fly that the device will be unveiled along with Key Lime Pie at Google I/O in May, and could expand on the Nexus 4 path by launching at a very low price on all of the major carriers in addition to the Play Store.
Time will tell.