T-Mobile has made some dramatic price cuts for its exclusive Android-based G1 mobile phone.

Although the device only went on sale on 30 October, it's just over a month later and the operator is now giving away the phone for free on £30 tariffs.

At launch, customers had to sign up for a £40 monthly contract in order to get the phone for free, and this reduction will no doubt anger early adopters who have effectively paid a premium.

While industry sources suggest the £10 drop is in an attempt to "overcome fierce competition from other high-end devices", T-Mobile insists that it's not a reaction to poor sales.

A T-Mobile spokesperson told Mobile: "We have chosen to offer the device free with a £30 contract to make the pricing more competitive in light of recent device launches. We are well on track to achieve our sales forecasts".

UPDATE: T-Mobile has informed Pocket-lint that it will alter early adopter's price plans if they get in touch - more via the link below.