Twisting wires decreases interference because the loop area between the wires (which determines the magnetic coupling into the signal) is reduced. In balanced pair operation, the two wires typically carry equal and opposite signals (differential mode) which are combined by addition at the destination. The common-mode noise from the two wires (mostly) cancel each other in this addition because the two wires have similar amounts of EMI that are 180 degrees out of phase. This results in the same effect as subtraction. Differential mode also reduces electromagnetic radiation from the cable, along with the attenuation that it causes.
The twist rate (also called pitch of the twist, usually defined in twists per meter) makes up part of the specification for a given type of cable. Where pairs are not twisted, one member of the pair may be closer to the source than the other, and thus exposed to slightly different induced electromotive force (EMF).
Where twist rates are equal, the same conductors of different pairs may repeatedly lie next to each other, partially undoing the benefits of differential mode. For this reason it is commonly specified that, at least for cables containing small numbers of pairs, the twist rates must differ.
In contrast to FTP (foiled twisted pair) and STP (shielded twisted pair) cabling, UTP (unshielded twisted pair) cable is not surrounded by any shielding. It is the primary wire type for telephone usage and is very common for computer networking, especially as patch cables or temporary network connections due to the high flexibility of the cables.