British Telecom has delayed the launch of the world's first commercial 3G mobile phone network after a software bug crashed its prototype phones.
BT planned to unveil the revolutionary service in the Isle of Man later this month, but the company's main equipment supplier has told the telecoms group to put its plans on hold.
BT has pushed back the launch to the end of the summer after Japanese firm NEC said it would not be able to fix the bug in time.
A BT spokesman denied that there had been a row with the technology company.
"There is no row between us. But we have decided to put the launch back to the end of summer," he said.
"There is a glitch with the software and we are working flat out to get it stabilised."
The software bug cuts off mobile phone users as soon as they move out of the range of the transmitter that originally connected the call.
The glitch prevents the phone from connecting to another base station and means that customers cannot use a phone while on the move.
Despite today's setbacks, BT still expects to be the first operator to launch a commercial 3G service in Europe.
The 3G mobile phone will offer high-speed internet access and video images, with BT paying £9.5bn for the licences that allow companies to offer the services.
"When we come to launch we still expect to be the first in Europe and possibly the first in the world to launch 3G," added the spokesman.
However, the delay is bad news for a telecoms sector that has been battered by mounting concerns over the value of 3G networks.
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