A new mobile phone handset designed for making free calls over the internet using Skype was unveiled yesterday.

It was developed jointly by mobile phone firm 3 and internet communications company Skype.

Called the 3 Skypephone, it can make both paid-for calls over the 3 network and free internet calls and instant messages to other Skype users.

Although other mobile phone handsets are already able to make free calls over the internet, this is the first handset tailor-made for Skype calls.

The Skypephone launches in the UK on Friday priced at £49.99 on a pay-as-you-go tariff or free with contracts.

The move was described as a breathrough within the industry yesterday.

John Delaney, principal analyst at telecoms consultancy Ovum, said: "We think 3 might have something of a hit with the Skypephone. The package is attractive, and the cost of acquiring it is low."

The Skypephone represents the first time an operator has launched a mass-market device that is designed to allow free calling over the internet from a mobile, a spokesman for 3 said.