Palm Inc. is ready to boost its smartphone sales by closing deal with a second U.S. carrier for a new version of the Centro that uses AT&T’s GSM network. Palm’s ‘wonder-phone’ includes some new features, such as new colors, an XMSR radio service and a push-to-talk capability, but at the same time it kept its 320x320 resolution on the 2.2 inches diagonally touch screen and the QWERTY keyboard.

It has however a slower connection than its 3G twin, but it kept one main feature: the price. The AT&T version of the Palm Centro will cost $99 for a 2-year service agreement, which is why it will probably meet Palm’s expectations on increased sales. After all, smartphones are in, and this particular device will appeal to a lot of customers, especially considering its price.

In terms of hardware, the AT&T version of the Centro runs on an Intel PXA270 312 processor, has 64 MB RAM, 320x320 high resolution touch screen, 1.3 megapixel camera, Bluetooth 1.2 radio, 1150 mAh battery and an expandable storage capacity through the microSD card slot. Palm explained they EDGE radio choice through the high U.S. coverage.

The software isn’t much different from the Palm Centro Sprint, with Documents to Go 10, Pocket Tunes 4.04, and the standard Palm operating system, which includes e-mail, chat and Web browsing clients. The XM Radio Mobile enables access to 25 commercial-free XM channels, and the battery supports up to four hours of talk time.

Palm, a revolutionary smartphone developer, has been left behind by rivals such as RIM or Apple that managed to make a significant impact on the market through the Blackberry and the iPhone. What Palm is trying to do is appeal to as many customers as possible, and offer the most of a smartphone at an affordable cost.