ORANGE today became the latest mobile phone operator to launch "third generation" services in the UK.

The technology allows for video calls and faster access to a range of features such as news footage, movie trailers, console-style games and downloadable music tracks and ringtones.

Orange boasts that its third generation, or 3G, network covers 70% of the UK population, including 11 major UK cities.

The service is also "integrated" with the existing 2G network, meaning no loss of signal if users travel outside of a 3G area when making a voice call.

Rival Vodafone launched its 3G services last month, initially covering 60% of the UK population. It aims to increase this to 80% by 2007.

Orange's new 3G offering will cost from é30 a month for contract customers who sign up before the end of January.

Handsets range in price from é120 down to nothing, depending on the package.

There is a choice of four handsets, with two to follow shortly.

A pay-as-you-go service will be launched next year.

Orange, part of France Telecom, hopes to attract between 1.5 million and two million 3G customers in the UK by the end of 2006.

Services

Bernard Ghillebaert, executive vice president of Orange UK, said: "This week we launch our next generation services in Orange shops across the UK, offering customers a wide range of handsets, exciting new services, the largest and broadest integrated network in the country and, most importantly, the best customer care.

"This is just the start of the 3G evolution. Throughout 2004 we have been making sure that the building blocks are in place so that 2005 opens up a new world of mobility for our customers.

"Our customers can now access more services faster, and keep in touch in more ways than ever before."

More than 2,000 trained staff will be available in Orange shops to help demonstrate 3G and answer customer queries.

The company is spending around é12 million in the UK promoting the new services.

Today's launch will further intensify competition between the rival operators which spent billions of pounds acquiring 3G licences four years ago.

The consumer magazine Which? last week advised mobile phone users not to upgrade to a 3G phone, for now at least.

It said the network coverage for 3G is too limited to justify the outlay involved, particularly away from large towns and cities.

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