Orange is attempting to rival Spotify by launching its own music-streaming service for mobile phones.

Orange said the service, which will be known as Monkey, is being run in conjunction with Channel4 and Universal Music Group, and will offer 600 minutes of streamed music to users that top-up at least £10 a month.

By dialing 247 from a handset, Orange customers will be presented with eight pre-set playlists they can listen to. Orange said the content of the playlist would be frequently updated.

"Unlike some music services which are either restricted to high-end more expensive handsets or have download costs, Monkey is for everyone. All you need to do is top up to get free music on any handset," said Tom Alexander, chief executive of Orange UK.

Orange also said users of the service would have access to a dedicated website where they could create playlists and view exclusive content.

Earlier this week, Spotify revealed it has submitted an app to Apple's iTunes app store that will allow iPhone owners to stream music from the web.

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