Everything Everywhere, which runs the combined T-Mobile and Orange groups in the UK, has said that 65% of its contract customers are now using smartphones.The Orange mobile store Everything Everywhere was formed as a joint venture between Germany’s T-Mobile and France’s Orange
The company siad that it’s user base was stabilising, after losing 227,000 pay as you go customers but gaining an extra 185,000 contract users in the three months to September.
It said 85% of these new contract customers were choosing smartphones.
It blamed new Ofcom regulations which cap charges between providers for a 1.9% fall in revenues to £1.55 billion.
Without the cuts the firm said underlying revenues grew by 3.8%.
Ofcom introduced price capping regulations on mobile termination rates in April 2011.
Mobile termination rates are charged when a call is finished on a different network to the one the call was made from.
Everything Everywhere is Britain’s largest mobile phone company with over 700 retail stores and 27 million customers in the UK.