New customers have turned away from Orange's broadband package after the provider introduced a £30 connection fee.

Staff are reported to have seen a 50 per cent decline in sales after the charge was announced, which Orange claims "brings the price in line with our competitors".

Ovum senior analyst Steven Hartley criticised the move and claimed that the firm should be focusing its resources on mobile broadband, rather than fixed-line alternatives.

He said: "Orange is missing a major opportunity due to a strategic emphasis on fixed broadband, combined with almost no marketing and exorbitant pricing for its mobile broadband offering."

An Orange spokesman responded by claiming the firm currently has 1.14 million subscribers, a seven per cent on previous year.

O2 recently became the latest service provider to enter the UK mobile broadband market. The modem is priced at £119.99 for those signing up for a one month rolling contract but it is free for consumers on an 18-month contract for £20.