The UK division of T-Mobile has slashed prices on the Android-based G1 smartphone, an announcement reveals. People should now be able to get the phone for free when signing up for a £30-per-month contract; previously, the G1 could only be had for free with a £40 tariff plan. Though the company is not providing an automatic discount to earlier customers, it is offering to switch people over to the cheaper plan.

To explain the sudden price drop, T-Mobile has only said that it represents an attempt to "make the pricing more competitive in light of recent device launches." Having launched on October 30th, the G1 is now being challenged by the Vodafone version of the BlackBerry Storm, and both devices are intended to rival Apple's iPhone 3G. T-Mobile claims that the G1 is doing well, however, and only needs the price cut to avoid succumbing to outside pressure.