Amazon finds Kindle 3G sugar daddy in AT&T

Amazon has announced that AT&T is sponsoring a version of its Kindle 3G under an agreement that will enable customers to buy the e-reader for $139 if they're willing to put up with the carrier’s ads on the home screen and screen saver.

That’s $25 less than the previous Kindle 3G with Special Offers price and $50 less than the regular retail version of the e-reader. An ad-supported Wi-Fi Kindle costs $115.

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Amazon/AT&T cover the cost of always-on wireless connectivity, which means customers don’t need to hunt for Wi-Fi hotspots or pay monthly wireless fees/annual contract fees to access books and magazines to read on the 6-inch device, which can hold up to 3,500 books.

"Kindle 3G customers read 20 percent more books, and take advantage of twice as many special offers," said Jeff Bezos, Founder and CEO, Amazon.com, said in a statement.  "A big thank you to AT&T for helping to make the new $139 price possible."

Amazon's price cuts are key as the company seeks to ensure its e-reader remains attractive in the face of competition from other e-reader vendors as well as Apple and its iPad tablet.

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