Disney Mobile was to be packaged as a family product, allowing parents to impose spending limits, as well as limit internet access and block chatrooms.
The service has already launched in the US, and was due to debut in the UK later this year. However, insiders suggest it may never be introduced here.
A company spokeswoman confirmed the launch had been suspended and could not confirm when it would come to market. Disney said its decision was prompted by mobile networks expanding their own chains.
In the US, parents can use Disney Mobile to track their children's whereabouts using GPS technology. The service offers downloads including TV programmes.