The Samsung Galaxy Ace was on sale at Carphone Warehouse three months ago for £120 including a £10 top up. Now O2 is selling the handset for as little as £70 plus a £7.50 top-up on the O2 Simplicity deal, which offers unlimited texts for a month.
The phone, otherwise known as the S5830, is refurbished and sports a similar design and specification to the Apple iPhone 3GS. It has a 3.5in 480 x 320 pixel display with Corning Gorilla Glass, a Qualcomm MSM7227 chipset clocked at 800MHz and a 5-megapixel camera with flash.
Other specifications include 158MB onboard storage, 278MB of RAM, a microSD card slot, Wi-Fi, Android 2.3 Gingerbread with Touchwiz 3.0, Swype, up to 11 hours talk time and a microUSB port.
Rivals to the Galaxy Ace include the £40 Alcatel One Touch 903, the Sony Xperia Tipo (which runs Android 4.0), the Motorola Motosmart, and the Sony Xperia U.
The phone was unveiled back in February 2011 alongside the Galaxy Fit, the Galaxy Gio and the Galaxy mini.