Vodafone's video phone revolution

MOBILE phones group Vodafone wants to win customers over to video calling this Christmas with a long-awaited range of 10 hi-tech handsets.

The new phones - also equipped with music players and high-resolution cameras - mark Vodafone's crucial introduction of third-generation multimedia services to the UK.

It paid the Government £5.9bn for a 3G licence in 2000 and spent £3bn building its network. Rival 3 launched last year. T-Mobile and others will follow soon.

Vodafone's handsets will be in stores by November, a month later than expected. Chief marketing officer Peter Bamford shrugged off the minor delay.

Reception may be patchy at first in parts of the country. Orange claims its coverage is ahead of its fiercest rival but Bamford added: 'There are certain other operators whose 3G coverage would not necessarily meet our criteria.'

Vodafone shares rose 3/4p to 131p. Goldman Sachs reckons it will announce a dividend increase with its results in November.