O2 is cutting its calling rates in the face of competition from other mobile networks who have recently launched cheaper calling plans.

The current £30 a month plan includes 200 anytime minutes, plus 100 texts and 100kb of internet browsing. Double minutes and texts are yours for 6 months on an 18-month contract, 3 months on a 12-month contract.

Compare this to the new plan: for £30, an 18-month contract gives you 400 anytime minutes, while a 12-month contract yields 250 minutes; both give you 100 multimedia, video and text texts as well as 100kb internet browsing.

For £35 a month or more, there's also a one month rollover of minutes and texts, free voicemail, and special roaming rates.

This means for the same money, you get 50 minutes and 25 texts more than with Orange; you'll get the same amount of minutes and texts with T-Mobile, but although you can mix your texts and minutes on the plan, only an 18-month contract is available.

Take your £30 over to Vodafone, and you'll get 200 minutes as well as 500 texts.

O2's new contracts will roll out starting on 13 July.