With one or two new Android handsets on the horizon, T-Mobile appears keen to keep its G1 handset in the running, and has promised the Cupcake upgrade will be installed on all new devices from the beginning of May and will be sent out to existing users free of charge around the same time.

“T-Mobile has released a comprehensive software update that brings its innovative handset into line with the latest Android platform development. It comes with new functions, loads of enhancements, and more improvements to the design of most input screens,” a statement from T-Mobile reads.

The Android 1.5 SDK has already been sent out to developers, and promises the onscreen keyboard users have been waiting for, along with video recording (with direct uploading to YouTube), improved Bluetooth, orientation auto-sensing and a revamp of most user interfaces.