The number of mobile phone users has risen to 2.4 million, 67 per cent of the State's population, new figures released yesterday show. The data also show that people are opting for mobile phones over fixed-line phones.

Although the number of mobile subscribers is expanding rapidly, the Republic still ranks behind Britain and several Nordic and Scandinavian countries, including Norway and Sweden, which have more than 80 per cent and 76 per cent penetration respectively.

The figures are contained in a marketing survey carried out on behalf of the Office of the Director of Telecommunications Regulation, which found that prepaid mobile phones are the most popular type. Almost two-thirds of mobile phone users buy cards and pay for their calls in advance.

The survey debunks the perception that pre-paid customers have no loyalty to any one telecoms provider. Only 11 per cent claim to have switched supplier in the past 12 months.

"The primary reason for switching are special offers (24 per cent), change of phone (22 per cent) and better coverage/ network (20 per cent)," according to the survey conducted by Irish Marketing Surveys in January/February. However, the entry of Meteor, the third mobile phone network, introduced late last month, should have some impact on the next survey, which is conducted quarterly.

The survey also found that Internet penetration has reached 27 per cent. More than one million people have home Internet access, with around 500,000 using it each month. Of those currently offline, 16 per cent plan to get connected within a year. "Of those that use the Internet, 41 per cent are under 25, confirming Ireland's future Internet growth potential."

The director of telecommunications regulation, Ms Etain Doyle, said the survey also showed that 83 per cent of those questioned believed the telecoms market was more competitive than it was 12 months ago.

More than half agree that the overall cost of their home telephone has reduced in the past year, "indicating that consumers are very aware of price reductions offered by Eircom and their competitors in recent months".

The survey found that one in seven respondents use a supplier other than Eircom for their home telephone services. The majority of those believe that their calls have reduced because they have switched.

The figures also show that the telecoms sector accounts for 2.79 per cent of gross domestic product and employs more than 17,000.