SEATTLE: Online retailer Amazon.com Inc is selling an ad-laden version of its Kindle 3G e-reader, which has wireless service for downloading books.

Amazon said that the new Kindle 3G with Special Offers costs $164. It includes on-screen ads and is $25 cheaper than the standard Kindle 3G.

Last month, Amazon started selling a Wi-Fi-equipped Kindle with ads for $114 – $25 less than the standard Kindle with Wi-Fi.

The announcement came the same day that Barnes & Noble Inc introduced a cheaper version of its Nook e-reader with a black-and-white touch screen. At $139, the new Nook shows the book seller is trying to compete with Amazon and Borders Group Inc on e-reader prices.

Amazon has consistently lowered the Kindle’s price since first releasing it at $399 in 2007.