If you are looking for a cheap Android smartphone. $49 fits the bill nicely. 

You can get the LG Optimus P690 Shine/Net/Spirit at Coles for $49 with a fly buys card or at a similar price on Ebay or at Australia Post. (With up to $10 credit and 1000 bonus points!)

The phone is a Hel$tra branded phone and comes with all their crap, however you can flash a clean Android Rom in about 15 minutes and have a fast and unbranded phone.

You can get the unbranded Indian Rom here:

http://csmg.lgmobile.com:9002/swdata/WEBSW/LGP690/AINDBK/V10e_00/V10E_00.kdz

Then follow these simple steps...

Sadly, you have to be running a version of windows, XP and 7 both suffice.

Get the LG USB drivers here and install them:

http://www.lg.com/au/support/product/support-product-profile-mobile-redux.jsp?customerModelCode=LGP690F&matchedModelCode=1400007741&searchEngineModelCode=LGP690F&initialTab=warranty&targetPage=support-product-profile

Then download and install the LG software update program:

http://csmg.lgmobile.com:9002/client/app/B2CAppSetup.exe

Download and extract KDZ_FW_UPD_EN.7z from XDA Developers:

http://forum.xda-developers.com/attachment.php?attachmentid=420545&d=1287222698

Configure your phone: Settings -> Applications -> Development, Tick USB Debugging

Connect your phone to the Windows PC using USB cable and wait until Windows has completed the installing drivers part...

Connect the phone but DO NOT turn on USB storage

Run KDZ_FW_UPD.exe as Administrator

Set Type: 3GQCT           Phone Mode: DIAG

Select the V10E_00.kdz file you downloaded at the start and click Lauch Software Update...

Be patient and 10-20 mins later your phone should reboot and you are Telstra Branding Free!

If it fails to reboot, try pulling the battery. If that fails try the Android 3 finger salute on this phone press Volume Down, Home and Power and release when you see the android...

That's pretty cool, an unbranded android device that works on the 850mhz (Next G) and 2100 3G networks as well as all the GSM networks, but how is this!

Download the Box application on the phone and register a new account (or even log in with your existing account) and get a FREE LIFETIME UPGRADE TO 50GB of storage. FREE. FOR YOUR LIFE!. Just for having an LG phone. 

If you have bought this phone for someone who struggles with small screens and complicated buttons, then you should consider installing this:

http://biglauncher.com/

It makes the phone very simple to operate and is great for the very old or young.