O2 has announced that it will be selling the Palm Pixi Plus on PAYG - for a mega cheap £109.99.

The deal is available as long as you top up £10 to begin with, but when you consider that you'll also be getting a free Palm Pixi Plus Artist Series pack, which usually sells for £29.99, then you really are looking at a bargain.

The Pixi Plus has a 2.63-inch multi-touch screen, with a 320 x 400 resolution and, of course, comes loaded with Palm's webOS platform.

It has a full QWERTY, along with a 2-megapixel camera with LED flash, geotagging, and video capture features.

We at Pocket-lint gave the phone 7 out of 10 in our comprehensive review, back in May, and mentioned that the price was a bit of a stumbling block.

But, at £109.99, this could well be the right phone for someone wanting to break into the smartphone gang, without breaking the bank.