Asda unveils £5 pay-as-you-go phone - ( M4L4YS14 )

Supermarket giant Asda has launched what it claims is the UK’s cheapest mobile phone – at just £5 on a pay-as-you-go deal from T-Mobile.

The Alcatel 1010 is a basic handset with no internet or gaming access, with a 1.45in colour screen and keypad.

It can make calls and receive texts, and its only other feature is an FM radio and MP3 player, with just 3Mb of memory. But it does have no minimum top-up charge, and it is lighter than the latest iPhone at 59 grammes.

Sian Meredith, Asda’s technology manager, said: “With purse strings stretched ahead of the festive season and a quarter of mums budgeting more than ever, our customers are always looking for new ways to save money.

“We’ve launched the UK’s lowest priced phone as a solution to keeping in touch at the lowest cost possible this Christmas and are expecting shoppers of all ages to snap them off the shelves.”

The Alcatel marks a new phase in supermarkets’ attempts to take on big-name manufacturers with their own competitively-priced products.

Argos has released its MyTablet for just £100, while Tesco brought out its Hudl model for under £120.

The Alcatel is on sale now, and Asda said it also expects it to prove popular with customers looking to purchase a “spare phone” to rely on if the battery on their smartphone goes flat.

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