Meteor launched the State's third mobile phone network yesterday offering a 25 pence per minute flat rate tariff targeted at the pre-paid market.

This price includes all calls made on Meteor's network to fixed line phones in the Republic and the UK. All calls made to other mobile phone networks will be charged at 35 pence.

The 25 pence tariff undercuts peak rates on the Digifone and Eircell pre-paid networks by up to 25 pence for some calls. However, it is higher than off-peak calls made on both rival networks.

The firm has not launched a cheaper contract offering, instead users can sign up to a "pay later" service.

This enables customers to buy a mobile without signing any documentation. They will later be offered a £15 per month minimum usage agreement if they choose the "pay later" option.

Last night Eircell described Meteor's tariff strategy as a "simplistic approach to a sophisticated market" and claimed its own tariffs compared favourably.

Telecoms experts pointed out that Meteor had chosen to concentrate on the pre-paid market which accounts for 90 per cent of new mobile sales.

Some 15,000 customers signed up for the company's pre-registration offer which will entitle them to half-price calls until the end of April.

It is understood the firm will introduce specially tailored business packages and other tariffs within a matter of months.

Mr Robert Hussey, analyst with NCB, said Meteor's entry would push mobile penetration rates above 70 per cent and increase the churn rate among existing operators.

Ms Jemma Houlihan, analyst with ABN Amro, said Meteor's task would be difficult because it faced two well-established companies which had already claimed 65 per cent of the market.

However, Mr Peter Quinn, the firm's chief operating officer, said this didn't take account of hundreds of thousands of users who had been double counted.

He said Meteor would launch with 55 per cent population coverage in major cities and public highways. This area accounted for some 75 per cent of all mobile calls, he added.

Mr Quinn said the £200 million (€254 million) roll-out of its network would cover 65 per cent of the population within six months of launch and 80 per cent by January 2002.

The company has introduced a "true coverage" pledge which means that Meteor would provide accurate information on coverage to all customers before they buy a Meteor phone.

Meteor will distribute its mobiles using its own network of shops, Carphone Warehouse, a network of other retailers and via its website www.meteor.ie. Customers will be able to choose handsets from £99 as well as ones with WAP service.

Mr Brad Horwitz, president of Western Wireless, the US cellular operator which owns 78 per cent of Meteor, said the licence to operate the Meteor service was worth the wait.

Meteor's launch was delayed for more than a year following a legal challenge from a competing licence challenger, mobile phone firm Orange.