Wal-Mart Inc. will start selling the G1 phone at a discounted price starting Wednesday, a Wal-Mart spokesman confirmed Monday night.

Wal-Mart will carry the Google Inc. (GOOG) G1 phone, sold through Deutsche Telekom AG’s (DT) T-Mobile USA, in 550 Wal-Mart stores at the reduced price of $ 148.88 for new customers, or existing customers eligible for an upgrade, who sign up for a two-year agreement, Wal-Mart spokeswoman Melissa O’Brien said.

Consumers interested in purchasing the T-Mobile G1 can save $31.11 at Wal-Mart as opposed to buying through T-Mobile, which sells the device for $179.99.

The T-Mobile G1, released for pre-order last month, is the first phone that’s compatible with Android, Google’s new operating system.

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