The huge number of features included in the latest mobile phones are baffling users, says Mformation.
Research by the company revealed that 85 percent of UK and US mobile phone users get frustrated if they have difficulty getting a new phone to work. The survey also highlighted that 61 percent feel setting up a new handset is as complicated and time-consuming as switching bank accounts.
When it comes to services such as browsing the web, 95 percent of users said they would try more new services if the technology was easier to set up. Over 60 percent admitted they had stopped using an application when they couldn't get it working straight away.
"There is an enormous range of things modern phones are capable of doing but the paradox is that many people are not using these capabilities," Matthew Bancroft from Mformation told the BBC.
He said that setting up a new phone should take only 15 minutes but many users found it was taking an hour or more to ensure the device was working in the way they wanted.
Bancroft recommended operators remove the frustrations because new data services were likely to form a bigger part of their revenues in the future.
He said most people wanted to do such tasks as browsing the web, reading email, or sending picture messages, but the complexity of modern handsets was leaving them foxed.
The report's findings suggest a rich market for new smartphones, such as Apple’s iPhone 3G. There have been half-a-billion App Store downloads in six months.