No refunds although one phone in seven faulty

The 3 network, seen as a pioneer of new mobile phone technology, fared worst of all, with one-third of customers having problems within the first 12 months of getting their phone, while Motorola and Sony Ericsson handsets were identified as those most prone to faults.

The research, by Which?, formerly known as the Consumers' Association, found that customers' problems did not end with the handset itself.

More than a quarter of those surveyed were unhappy with the way their query was handled by their service provider when their phone developed a fault.

Malcolm Coles, editor of Which? magazine, said: "A one-in-seven chance your phone's going to develop a fault is way too high.

"Not only that, but retailers who should be bending over backwards to help customers who have already suffered the inconvenience of a fault are not giving people the help they need when they complain."

With 18 million mobile phones sold in the UK last year, the figures suggest that more than two million customers will have encountered faulty handsets. And 70 per cent of these problems come in the first six months after purchase.

In the survey of 5,085 people, 32 per cent of those on the 3 network had encountered difficulties within 12 months. Other poor performers were Orange (16 per cent), T-Mobile (15 per cent) and Vodafone (15 per cent). The customers least likely to experience faults were those of Tesco (4 per cent) and Virgin (8 per cent).

However, 3 said their customer sample was unfair, as only 50 of their customers were asked, while Orange and Vodafone had more than 550 asked.

A 3 spokesman added: "It is not a like-for-like comparison. 3 offers a range of services not available on most networks. We're working closely with our manufacturers and are pleased with the progress."

Part of the problem which consumers report is that mobile phone retailers often say they cannot deal with any faults on phones not covered by insurance if the problem is reported to them more than 28 days after purchase.

However, under Section 14 of the Sale of Goods Act 1979, retailers are required to supply goods of satisfactory quality, meaning they are in breach of contract if a fault develops.

Pete Tynan, author of the report, said: "What kicked off this research was the number of people who told us that they have had problems with their mobiles but the shops refused to do things if they hadn't taken out the insurance. We were staggered by the amount of problems.

"The 28-day limit is a complete myth. The law says a phone should be free from defects when you buy it.

"It might be that the problems only become apparent after a few weeks, but the 28-day rule is just something the shops have come up with."

Mr Tynan added that customers should never accept being passed on to the manufacturer to complain.

He said: "The retailer has to sort out the problem: not the manufacturer, not the insurer and not the network. I can't see any circumstances why the customer would be passed on to a manufacturer."

Graeme Millar, chairman of the Scottish Consumer Council, said he was aware that many consumers ran into difficulties, and retailers needed to deal with the complaints much more effectively.

He said: "Bearing in mind the technological advances in mobile phone technology, it is surprising how many problems consumers have."