The E3 will be promoted heavily before Christmas

Called E3 the home videophones are going on sale for �99 each. A pair of videophones will cost �179.

Video calls can only be made between E3 handsets but the devices can also be used to browse the web and send e-mail messages.

The handsets can also take still photos that can be sent to other computers or mobile phones.

Picture post

The E3 is the third-generation of Amstrad's E-Mailer product introduced in March 2000.

The first E-mailer let people send and receive messages and the second added net access - albeit to a subset of all sites on the net.

E3 COSTS E-mail session - 15p per day Video call - 50p plus call costs Net browsing - 5p per minute Send photo - 25p per e-mail MMS - �1 per message SMS - 50p per message

Amstrad said there were no joining fees or subscription costs associated with the E3 phone. Users register for the service by following on-screen prompts that appear when the E3 is first plugged in and turned on.

Video calls made via the E3 handset incur a 50p charge as well as usual call costs.

Amstrad said the images appearing on the E3's colour screen will not be TV quality but are likely to match what is possible on a PC using a dial-up net account.

As well as letting people make voice and video calls the E3 can also be used to send text messages and multimedia message to mobile phones. These types of messages can only be received by the E3 if they are sent in response to one from the handset.

"We developed the E3 because we realised that many people want to be able to keep in touch via an easy-to-use and cost-effective means of video calling," said Simon Sugar, commercial director at Amstrad.

"Prior to the E3, alternative options for video calling were cost-prohibitive to the majority of people," said Mr Sugar.

He said that the E3 removed the need to use a PC to make video calls, send e-mail and pictures and browse the web.

As yet it is unclear how popular the device will be. Videophones have been tried many times in the past but, so far, have not caught on.

The E3 may also face competition from mobile phone firm 3 that lets its customers do video calls.