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The mobile operator will continue issuing Equity points until August 30 and customers will have until September 27 to redeem points.

"Our research has shown that customer loyalty is driven more by network coverage, value for money, handset and excellent customer service than by points-based loyalty schemes, said an Orange spokesman.

Equity, which launched in 1997, rewards monthly subscribers points on the length of calls and number of text messages they make. For instance, each minute of local or national calls and each text message sent earns one point. Customers redeem the points against goods and services provided through a number of commercial partners by texting the word 'Equity' and dialling 402.

Current redeemable offers include a Penguin golf club package allowing two rounds of golf in return for 2000 points.

Orange's abandonment of Equity is a symptom of the ongoing trend among mobile operators of refocusing their efforts to get customers to use their handsets for higher revenue-making date services such as news and sport text alerts rather than the more staple voice calls and text messaging services. The company's 177 dial-up service provides subscribers with recorded sports news while calling 277 delivers the latest World Cup football scores.

Orange recently overtook Vodafone in the UK in subscriber numbers with 12.4million active users, but currently lags behind the world's biggest mobile company in the much-coveted measurement of average revenue per unit (ARPU). Global sales for the last quarter climbed 16% to £2.38bn and its global subscriber base now numbers 40.5 million people.

Orange's below-the-line agency roster in the UK includes Lowe Live, KLP Euro RSCG and WWAV Rapp Collins.