According to the survey, nearly 1.6 million children under 18 were allowed to have their mobiles at night.
The study found that almost 40 per cent of kids between four and seven years had their own mobile, and a quarter took it to their bedrooms.
Dr Carr-Gregg said 40 per cent of children turned up sleep deprived on school nights, while the number rose to 69 per cent for 12 to 18-year-olds.
"I personally know of six and seven-year-olds staying up to 3 to 4am to send text messages to their friends. That's just insane. We know that young people are the most sleep deprived segment of the population," News.com.au quoted him as saying.
Parents, who gave little time to their kids and provided phones, TVs and computers in their bedrooms, were held responsible for the phenomenon, dubbed by the expert as "neglect amid affluence".
He added: "They build these big houses but the children grow up in emotional silos. I reckon that the economic downturn is going to exacerbate the problem."