Orange has announced it is to simplify its mobile charges by abandoning its entire range of mobile phone contract tariffs and introducing one simple charge plan.

The mobile giant is the first of the major operators to ditch standard industry practice.

Currently the major operators offer a range of tariff plans with numerous different permutations to suit different customer needs. Vodafone, MMO and T-Mobile currently use this industry standard, but are expected to follow Orange’s lead.

The new scheme is being dubbed ‘Your Plan’ and will allow users to choose from a range of all-inclusive call minute bundles - starting at 30 minutes a month - in return for a fixed monthly fee. After the all-inclusive minutes have been used up, national calls will cost around 10p a minute to other Orange users and about 35p a minute to other networks.

The move is expected to boost Orange's consumer appeal. According to a report in the Financial Times, Orange expects the new tariff to increase average spending by consumers, reversing more than four years of industry-wide declines.

Orange's new tariff will be the sole offering for all new customers. Existing customers will remain on their current scheme but will be allowed to change to the new tariff.