The Motorola Milestone is the international version of the Droid, pictured. (Jeff Chiu/Canadian Press)

Telus has launched the hotly anticipated Motorola Milestone, a device shaping up as a serious contender to the iPhone in the smartphone wars.

The Milestone, which is the international version of the Droid phone launched in the United States last year, has a multi-touch screen like the iPhone but also has a slide-out keyboard. One of the chief complaints from users about the iPhone is that it is difficult to type on.

The Milestone is also the first device to run the second version of Google's operating system, Android 2.0. In the United States, the newer operating system enables advanced features such as turn-by-turn GPS voice-controlled voice navigation. That capability is technically present on the Milestone, but so far Google has only plotted maps for the United States.

Android 2.0 and the Milestone also enable Flash, the multimedia software used by many websites to display video and interactive features. Apple has so far resisted adding Flash to the iPhone and snubbed it for its upcoming iPad tablet computer.

The Droid was a smash hit in the United States after its release late last year, selling an estimated one million units for Verizon. The Milestone also sold briskly when it was released in the United Kingdom and Hong Kong in December.

The device is a much-needed hit for Motorola, which so far has struggled to adapt from simple feature phones to more advanced smartphones. The company had a huge hit earlier in the decade with its Razr phone but has since released smartphones primarily running Microsoft's Windows Mobile, an operating system that has largely struck out with consumers.

Canadian carriers gain ground

While Canadian wireless carriers have for years lagged behind the rest of the world in offering the latest and best new mobile devices, they are quickly gaining ground. Telus and Bell jointly launched a state-of-the-art HSPA+ network in November, opening up competition with Rogers for hot handsets. All three companies now offer the iPhone.

Telus is now one of the only wireless providers in the world to sell both the Milestone/Droid and the iPhone. The company is selling the Milestone from $199 on a three-year contract — still unique to Canada — up to $599 without a contract.

Competition for smartphone market share has been ratcheting up since Apple released the iPhone in 2007. Estimates vary for global market share but analysts agree that Nokia leads with about 40 per cent, followed by BlackBerry-maker Research in Motion with around 20 per cent and Apple at 15 per cent. Apple is in third spot, but it has significant momentum and its veteran rivals have had long headstarts.

Android is the newest comer to the market, with the first device launching in late 2008, but it is growing quickly, analysts say. In the United States, phones running Google's operating system have grabbed five per cent of the market in just over a year, according to comScore, which puts them neck and neck for fourth spot with Palm's six per cent.