More than 95 per cent of the world's mobile phone subscribers will still be using second-generation technology rather than third generation by the end of 2003, a PricewaterhouseCoopers' report says.

Limited network infrastructure and a lack of mobile applications requiring high bandwidth will stall uptake of the technology, says the report.

The transition from dial-up connections to "always-on" technologies such as 2.5G networks will be more significant.

Third-generation (3G) mobile technologies, which can supply a range of multimedia services at very high speeds to mobile devices, were expected to be on the market later this year. However, NTT DoCoMo and British Telecom subsidiary Manx Telecom recently said the introduction of 3G services would be delayed.