Amazon announced today that the price of the Kindle 3G would drop from it’s previous $189 by to $139 – but the price drop comes with a catch. The new, lower, price is for an advertiser sponsored version of the Kindle 3G.

So what is being highly promoted as a priced drop is actually a new version of the Amazon Kindle 3G. The original Kindle 3G is still priced at $189, and a new one is available – the Kindle 3G with Special Offers – at $139. The Special Offers version includes advertisements on the home screen and screen-savers. It does not interrupt the reading of e-books with advertisments.

That aside, the new, lower priced Kindle 3 is causing a lot of excitement. Amazon released the details this morning. Amazon credits AT&T for sponsoring the new version. “A big thank you to AT&T for helping to make the new $139 price possible,” said Jeff Bezos, Founder and CEO, Amazon.com, in a statement about the price drop.

The Kindle 3G allows readers to download e-books from practically any location in the US. There is no monthly access charge for the 3G connection. Amazon also offers several other versions – including an ad sponsored version of the original, Kindle with Special Offers, for $114. The original Kindle downloads e-books via wifi.