My uncle uses Spice Mi-350n (dual sim Gingerbread) as his secondary phone and is satisfied with it. You may check it out, it may fill your needs.Galaxy Y is also a good option but I don't know what it's price is.
In very simple words, A-GPS requires a gprs/3g/wifi connection. Real GPS does not require gprs/3g/wifi connections. It downloads ephemeris from satellites directly.
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