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Mobile phone giant 3 is launching a new model which it hoped will capitalise on the popularity of social networking sites such as Facebook.

The brand's new INQ1 is set to be released in time for Christmas and integrates Facebook with all of the functions normally found on a mobile phone such as a contacts book and an inbox for messages.

It is aimed at people who view smartphones as too pricey but who still want the extra benefits of email and mobile internet surfing.

Commenting on the device, INQ's chief executive Frank Meehan said: "The 85 per cent to 95 per cent of the market that did not buy the iPhone and cannot afford an expensive smartphone has been frankly forgotten."

The gadget will be free to anyone who signs up to a £15-a-month, 18-month contract with 3, with people's money getting them unlimited Facebook and Skype calls, as well as access to Windows Live Messenger and up to 1GB a month of web access.

Pay-as-you-go users can get their hands on the INQ1 for £79.99 if they agree to spend at least £5 a month on internet access.

T-Mobile's Google Android smartphone was launched in the UK last month, while BlackBerry unveiled its new Curve offering.

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