ORANGE has become 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 said that its third generation, or 3G, network covered 70 per cent of the UK population, including 11 major UK cities.

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

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

Orange's 3G service will cost from £30 a month for contract customers who sign up before the end of January.

Handsets range in price from £120 down to nothing, depending on the package.

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

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.

The company is spending about £12m in the UK promoting the service.

Yesterday'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 that, for the time being, they should not upgrade to a 3G phone.

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