Orange has launched has launched a cut-price £5 per month mobile phone contract, in a move likely to spark a price war among UK networks.
The new Pay Monthly deal offers 50 minutes, 50 texts and a free Nokia 2630 handset and is currently the cheapest monthly contract on the market.
The offer will run alongside the operator's existing Pay Monthly deals which are priced at £10 and £15 per month respectively.
Orange's £10 deal includes 100 free minutes, 300 free texts and a Nokia 3600 handset, while the £15 offer features 200 free minutes, unlimited texts and a free Nokia 6500.
Orange is also introducing 18-month SIM Only contracts for the first time, which it claims allow customers to benefit from 50 per cent more inclusive minutes and text messages than traditional rolling SIM Only contracts
Neil Macgeorge, director of Pay Monthly at Orange UK, said: “In the current economic climate, the demand for both low-cost monthly plans which include a phone and SIM only deals has materially increased.
“These new 36-month ‘phone plans starting at £5 will provide light users with more choice since currently their only option is a pay as you go package.”
Last week, Orange confirmed it is to begin selling the BlackBerry Curve 8900 on pay as you go deals.