Europe UK : ASDA will today start selling mobile phones for £5 - cheaper than a packet of cigarettes. Asda's decision to market Britain's cheapest pay-as-you-go mobile will start a price war with other retailers.

Customers at other stores which offer low-cost handsets normally have to buy more than £10 worth of credit for the phone. But Asda says its customers do not have to sign up to any deal or buy credit.

The models available are Nokia 1112 ( pictured left ) Sagem My212x, Sagem My220x and Sagem My150x.

There are a number of tariffs from Virgin, T-Mobile and Orange, with calls to a landline starting from 12p per minute.

FULL STORY FROM THE DAILY MAIL ( click )