UK saves on communications as usage rises

Ofcom reports continuing price drop as UK spends seven hours daily using communications services

UK residents are spending more time using communications
services but are paying less each passing year, research from industry
watchdog Ofcom has found.

In 2007 the average person in the UK spent seven hours and nine minutes of
each day using the internet, landlines, mobile phones, listening to the radio
and watching television. This represents an increase of six minutes on the
2006 figure.

Time spent using mobile phones has doubled in the last five years,
from five to ten minutes each day.

Daily PC and laptop use has quadrupled in that time, from six minutes to 24. Despite this surge in usage, the average UK household spent a monthly total of £93.63 on communications services last year.

This is £1.53 down from 2006 and £4.31 less than in 2004.

The trend stands in stark contrast to many other goods, such as food,
which rose seven per cent in price last year. Ofcom attributes the continued
reductions to three main factors.

Firstly, many customers achieve savings by buying multiple services through one supplier. Secondly, the price of broadband continues to drop rapidly, falling four
per cent last year to a average monthly cost of £9.45. Finally, people are
increasingly inclined to swap between service providers in attempt to land the
best deal.

Ofcom reports that a quarter of UK residents have changed ISP at least once, 37 per cent have shifted between landline providers and upwards of two fifths have switched mobile providers.

The study also found that 58 per cent of households now use broadband through a landline, up from 52 per cent in 2006. About two million people access the web using a data card, USB modem or dongle and over ten per cent of mobile users have used their phone to surf the net.

Peter Phillips, Ofcom partner for strategy and market development, said: “We are spending more time with our communications devices but spending less on them.

"Our devotion to watching, listening and staying in touch wherever and whenever we want shows no sign of diminishing and, with healthy competition, overall prices offer increasing value for money. That is what consumers demand and what Ofcom helps deliver.”