T-Mobile has unveiled its latest budget Android phone, the T-Mobile Vivacity.

Running Android 2.3 (Gingerbread), the handset has a not-to-be-sniffed-at 3.5-inch WVGA screen and the 5MP camera should keep happy snappers busy.

There's also support for up to 32GB of microSD action (which is good since the built-in memory is a measly 512MB), GPS, Wi-Fi, Bluetooth and 3G connectivity.

Money money money

But the really enticing feature of the T-Mobile Vivacity is its price tag – you can pick it up from the network for free on a £10/month contract, otherwise its yours for £99 on pay as you go.

Those prices set the Vivacity squarely in competition with Orange's wildly successful San Francisco handsets.

We haven't had our hands on the Orange San Francisco 2 yet, but if it's anything like its 4.5-star predecessor, it'll be a tough cookie to crumble.

The T-Mobile Vivacity is on sale from today, and you can pick it up from T-Mobile shops, by phone or online.