T-Mobile has announced that it is setting a strict cap on the amount of data users can download onto Google's new Android phone.

The network operator is saying in its terms and conditions that the phone will be limited to 1GB of information per month. After that limit is reached the phone can still download data, but bandwidth is limited to 50Kbps.

The cap does not apply to Wi-Fi use, but people outside the home or office would be limited to just 34MB a day which may not be enough for the kind of heavy users Google has in mind.

T-Mobile's move puts the firm at odds with competitors AT&T, Verizon and Sprint, which typically have caps of 5GB and even then do not reduce download speeds but just tack on extra charges.

The move will also limit the success of the phone's use of applications. Apple has already had over 100 million applications downloaded from its App Store in the first 60 days since opening.

Since Google is touting the Android phone system as totally open and targeting developers, the usage caps are likely to seriously limit the potential for ISVs to sell on large amounts of applications.

UPDATE: T-Mobile has told VNUnet that there is a different fair use limit for UK customers of 3GB per month. A spokesman said the carrier does not block access beyond this point, but if a customer regularly exceeds the limit, the company would contact them to discuss a more suitable data plan.