Not everyone wants to spend over $500 on a smartphone, and Telstra knows this, with the company getting behind the budget devices and releasing an Android-powered handset for $99 on prepaid.

Built by ZTE, one of the brands commonly associated with budget touchscreen smartphones, the Telstra Smart-Touch 2 is basic smartphones for people who don’t need too much out of their handsets.

The Smart-Touch 2 sports a 3.5 inch capacitive touchscreen sporting 320×480 resolution, 2 megapixel rear camera, Bluetooth 3.0 support, WiFi, GPS, 2GB microSD card, and last year’s version of Android, 2.3 also known as Gingerbread.

Internet functionality is included, so you can get your Gmail, work out where you’re going with Google Maps, network with Facebook and Twitter, and download more apps from the google Play store.

With a $99 price tag and features that make it a fairly low end phone, Telstra has made this a prepaid phone, providing 200MB of data bandwidth, 200 minutes of talk time, and 200 texts with a $30 recharge on the Telstra Beyond Talk prepaid options.

Different amounts net you different packs, mind you, with recharges of over $50 grabbing 400MB and higher, at least 500 minutes per month, and unlimited text messages to standard Australian numbers.

The phone is available across the country this week in black or pink.