Just for anybody else wondering about this.
I had a similar problem with Phones 4U a while back.
The handset they gave me developed a fault within 6 months, they told me that as I hadn't taken the insurance they didn't have to do anything about it.
After some wrangling and letter writing (I reminded them of the sale of goods and services act, and gave them the address of my solicitor

) they agreed that they
did have an abligation to replae the handset and that I wasn't liable for
any costs.
Caspar. Orange have ripped you off to the tune of £15. Your handset was faulty within its statuatory 12 month guarentee period. You were
not liable for any costs.