Communications cost less

Consumers are spending more time every day using communication services but are paying less for them, a report from market regulator Ofcom has found.

The average Brit spent seven hours and nine minutes per day using the internet, the television and making calls, according to Ofcom.

But the average monthly household spend on communication services fell again in 2007, to £93.63, down 1.6 per cent on 2006 and down 4.4 per cent since 2004.

The drop was mainly due to falling costs for fixed telephone calls and broadband use, the regulator said.

Television and radio use has fallen as internet use has climbed. Consumers spend around 15 minutes a day less watching television, and 24 minutes a day extra on the internet compared to 2002.

The report found broadband uptake soared by 22 per cent in 2007, due to falling prices and to competition and also the popularity of 'bundling' where several services such as television, fixed line and broadband are packaged together.

During 2007, the estimated average cost of a residential broadband connection fell by eight per cent to £14.11 a month, Ofcom said.

The use of fixed lines fell over the year, however, as more consumers used their mobile phones or the internet to make calls at home.

Ofcom has also reported a surge in the use of 'dongles' the devices that allow consumers to surf the internet when out and about. Between February and June this year, monthly sales rose from 69,000 to 133,000 a month.

However, the regulator said limited capacity on the mobile network means mobile broadband is unlikely to takeover from home broadband.