All credit due to Motorola - it's come up with what many of us have been after for years: a mobile phone that allows you to make phone calls and to store contacts and doesn't cost a king's ransom.

The Carphone Warehouse has started selling a Motorola W180 handset for the princely sum of £2.89, reports gadget site The Electric Pig.

The phone must be bought with an Orange SIM card primed with £10 of airtime, but there's no contract tie-in, so you can use the handset on a pay-as-you-go basis after that.

The phone can store up to 500 phone book contacts, has a 128x128-pixel 65K colour display and weighs 85 grammes. It's a dual-band phone that can be used in the UK and mainland Europe and has a standby time of 590 minutes.

Full details here.