Three and ZTE have finally officially announced the ZTE Racer on the network following speculation of an imminent deal.

The ZTE Racer will cost just £99.99, or from £15 a month on contract, making it a very affordable Android handset - especially as it's running Android 2.1.

It's got the basic 'vanilla' Android experience, and as you'd expect for this price, it comes with a resistive 2.8-inch QVGA touchscreen.

Big apps

However, it also has a 3.2MP camera, 2GB of storage through the supplied microSD card (up to 8GB) and includes Spotify, Facebook and Google Apps from the box.

PAYG users will get 150MB of data with every £5 top up, or can purchase an extra 1GB for a further fiver. Contract users get 500MB with their deal each month, and also can take advantage of the 1GB offer.

ZTE has told TechRadar that it intends to be one of the top-three handset manufacturers in the world by 2015 (under both its own brand and through carrier link-ups) so it will be interesting to see how this cheap-as-chips handset does in an increasingly congested touchscreen market.