Orange UK revealed it has lost almost 10,000 contract customers. The revelation came out when its parent company France Telecom released its financial results this week.

It's still looking bright for Orange UK though, with a 0.4 per cent increase in revenue on 2005 totalling 5.87bn euros (£2.2bn).

The company also said its customer base increased 3.2 per cent over all - a development it claims was lead by a 4.9 per cent increase in the company's prepaid mobile customers.

The number of 3G customers tripled in 12 months, reaching 931,000 at the end of 2006. It also saw an increase in revenue from non-text messaging data services - such as news and weather information services - of 14.5 per cent.

Orange UK's mobile customer tally is now 15.3m people - up around half a million from 2005.

In a statement, France Telecom said of Orange UK: "The impact of the growth in the number of subscribers and the higher revenues we generated were offset by the decrease in revenues from voice and equipment, reflecting a tougher competitive environment."