According to "The Communications Market 2004", consumers have
increased the amount of time spent on-line eight-fold in the period
between 1999 and 2003 – up from an average of two hours a week on a
dial-up connection to around 16 hours per week on broadband.
Over the same period consumers have increased their use of
mobile phones from 10 minutes a week to 27 minutes per week, and
text messages have gone up from one a week to 15 per week.
Television viewing has only increased by 2%, while radio
listening has gone up by 6%, said the report.
UK consumers are willing to spend more money to pay for media
and communications services – accounting for 4% of household
spending, up from 2.9% in 1999 – and more and more people are going
digital, according to the report. It seems that 53% of households
have at least one digitally enabled TV set, while broadband is
available to 88.7% of households.
The use of broadband is now growing by about 50,000 new
subscribers per week, says Ofcom, bringing the total number of UK
subscribers in line with those in France and Germany. Ofcom
estimates that the total number of subscribers should break the
five million mark in mid-September.
The report found that 86% of UK households now have at least one
mobile phone and 21% use their mobile as their main way of making
and receiving calls – as compared to 17% in 2002.
This growth in digital take up and use appears to have had an
effect on the revenue sources for the communications industry.
According to the report, for the first time ever in the UK the
total amount of revenue raised by the TV industry through
subscription has exceeded that raised from advertising. Similarly
in the telecoms sector, consumer spending on mobile services has
now exceeded that spent over fixed line phones.
"Our analysis shows that consumers are setting aside more of
both their time and their money for media and communications
services. As a result, the market is growing, with new services and
innovation at the heart of its development," said Ed Richards,
Ofcom's Senior Partner, Strategy and Market Developments.
"The report also reveals the extent to which the UK is becoming
a digital nation, with widespread availability of digital networks
of all kinds. This is to be welcomed; the advance of digital
technology brings increased consumer choice and greater innovation,
through broadband access, digital television, music downloads,
digital radio and more," he added.
