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Orange has announced that they will be launching 24 month contract versions of three of their popular tariffs.

This announcement comes when many retailers are complaining that 18 month contract have trapped many customers into long deals, therefore slowing down the market.

Virgin have recently launched their 6 month Sim only deals as an alternative to a 12 and 18 month contract, so it has come as a surprise that Orange are extending their contract lengths not shortening them.

Orange are releasing the 24 month contracts to offer their customer’s value for money with the tariffs offering a lot more inclusive minutes and text messages for a lower line rental than on an 18 month contract. However customers need to think about their choice of handset as they may be getting a good tariff deal but will they be happy with the same handset for 2 years?  Many mobile phones come with 12 month manufacturers warranty so it may be wise to check this out when choosing your mobile phone as you may need to take out insurance for your second year.

The new 24 month tariffs available directly through Orange are Dolphin £35 which gives you 900 minutes, unlimited texts and unlimited landline minutes. Racoon £35 which offers 1200 minutes 150 texts and unlimited landline minutes and the Canary £40 which gives you 1400 minutes, 450 text messages and unlimited own network calls.

Orange say that 70% of its customers since August 2006 are on 18 month contracts, surely by adding 24 month tariffs this will slow the market down even more.  Time will tell if the 24 month contracts are popular, we certainly think that if Virgin bundle in a mobile phone with their 6 month contracts they will be hugely popular.  Hopefully Orange will also look into doing shorter contracts to appeal to those people who like to change their mobile phone regularly.