Everything Everywhere customers take contracts to get smartphones

Everything Everywhere also attracted new customers with a number of cut-price smartphone deals, but Mr Swantee said they were a footnote:

"The commercial momentum we've had is not based on discounting... All the things we do are in line with our strategy to improve our profitability to 25pc [by 2015]," he said.

Margins at Everything Everywhere currently stand at 20.9pc but will be lifted by an 8pc reduction in staff, weighted towards its head office, and a controversial increase in tariffs at Orange at the end of last year.

Customers complained about the rise on Twitter and Facebook, but Orange has not seen any increase in the number of customers hanging up on their contracts, Mr Swantee said.

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