Chinese mobile phone provider ZTE launch the first smartphone in the world to use Mozilla OS Firefox system at the Mobile World Congress in Barcelona on Monday.

ZTE will work alongside network provider Telefonica to launch their phone named ZTE Open in Spain, Venezuela and Colombia this summer.

The company said the new phone, which has a tactile 3.5 inch screen is aimed at young people on a budget.

"ZTE continues breaking limits with the aim of bringing its clients the latest that mobile technology can offer," said ZTE executive vice-president He Shiyou.

Telefonica spokesperson Marieta del Rivero said the phone was a "very attractive option for our clients, especially young people, who are a key part of our market."

ZTE is currently the fourth largest manufacturer of mobile telephones in the world.