Asda is battling for its share of the lucrative mobile phone market with its launch of a pay-as-you-go mobile handset for just £5 today.

Four types of Nokia and Sagem handsets are available and the price also includes a SIM card. Customers can choose between Virgin, T-Mobile and Orange tariffs.

Asda trading director Peter Pritchard told The Daily Mirror: “Shoppers are increasingly turning to pay as you go as a way of controlling their spending on mobiles. This offer is exactly what’s needed to help them.”

Asda expects the 50,000 phones to be snapped up within 24 hours. The bargain phones are cheaper than the supermarket’s own-brand Fifi fun phone for toddlers, which is£5.47.

Rival Tesco’s lowest pay-as-you-go handsets include an LG phone for£9.97 and a Motorola for£11.22.

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