Xperia X10 and Optimus GT540

British network O2 is offering two entry-level Android phones for peanuts in its January sale. The Sony Ericsson Xperia X8 and LG Optimus GT540 are both available for free on any of O2's contracts, which start at £10.21 per month. To sweeten the deal, the carrier is also offering a £50 gift certificate, redeemable at a UK retailer of your choice.

Both phones offer fairly similar specs -- a 600MHz CPU, 3-inch HVGA screen and Android 1.6 (upgradeable to 2.1). The Optimus, however, boasts 256MB of RAM versus the X8's 128MB. In terms of software, the Optimus has been promised an upgrade to Android 2.2 Froyo at some point, though this has yet to appear. The X8, however, will be forever stuck on Eclair, as Sony Ericsson recently announced that it would not be upgrading the device to Android 2.2. [O2 UK]