The rapid growth of pay-TV and broadband has contributed to households spending an average of more than £1,000 a year on communications services, according to a new report from Ofcom.
This figure, which includes the BBC licence fee and payments for mobile phones, accounts for 4 per cent of all consumer spending and is a third higher, excluding inflation, than the average expenditure on the same services five years ago.
Ofcom identified that there are now more households with broadband than dial-up connections. Broadband now has a 30 per cent penetration in UK households and businesses and the number of connections has doubled since the end of 2003.
Ofcom estimates that the number of households able to view TV via broadband is likely to exceed the number of households on analogue terrestrial broadcasts for their TV viewing by 2010.
Elsewhere in its Communications Market report, Ofcom claims that DAB digital radio continues to expand and that by the first quarter of the year, 1.5 million sets had been sold.
This article was first published on Campaign