T-Mobile is gearing up to launch G1 phones across Europe with prices starting at 1 Euro for a two-year contract.

The mobile-operator said this week it plans to launch HTC's Android-powered G1 handset in continental Europe from the end of January.

Germany, Austria, the Czech Republic, Poland and the Netherlands, will be first on the list. T-mobile did not comment on other markets.

We will introduce the G1 by 30 January in the Netherlands, Czech Republic and Austria, said Hamid Akhavan, CEO of T-Mobile, in a report by Reuters, Monday.

He said the handset will go on sale in Germany from 2 February, and then in Poland later in the same month.

At present the G1 is only available in the U.K. and the U.S.

T-Mobile has not released sales figures for the phone; however Strategy Analytics predicted in September it would sell 400,000 units in the U.S. alone before the end of the fourth quarter of 2008.

We have sold several hundred thousand phones. Sales have clearly exceeded our expectations, commented Akhavan on Monday, although he didn't disclose an exact figure.

Today's news is an important step for the Open Handset Alliance and Android, said Andy Rubin, senior director of mobile platforms for Google, in a statement.

The Open Handset Alliance is an industry body aimed at driving the development of open mobile software, including Android. Its membership comprises mobile operators, handset vendors, chipmakers and software developers.

T-Mobile said more than 700 applications are already available for Android users.

Meanwhile plans by one vendor to launch an Android phone in Australia suffered a setback last week, when it emerged that the screen size and resolution was not likely to be compatible with the majority of applications supported by the operating system.

The Kogan Agora was on track to become the second Android-powered device to go on sale after the HTC-made G1, but its commercial launch has been delayed indefinitely.