Orange UK has reduced the cost of its base-level mobile broadband package to less than £5 a month.

From today (Wednesday) the operator will now charge customers just £4.89 a month for an 18-month contract.

The deal, which includes a free dongle, is well-suited to those with low usage demands, as it only offers a 500 Mb usage allowance.

What is more, the penalties that Orange will charge if customers go over their download limits will be capped.

The broadband provider has set the limit at which people can be charged for going over their data usage allowance at £40.

Speaking to the Times, Jo Shapland, Senior Proposition Manager of the company's mobile broadband product, said that Orange does not want its customers to have any nasty surprises.

"We have to reduce the bill-shock element especially for a lower price point product. That reassurance will stimulate more usage," she commented.