Ref: 57/03
Date: 26 October 2003

Half of all UK homes now have Internet access according to new consumer research published today by Oftel.

The key findings of the research show:

• 12.5 million UK households are now on-line, with 750,000 new connections over the last three months;

• around one million Internet customers are likely to upgrade to broadband over the next 12 months;

• UK prices for dial-up Internet access are cheaper than other European countries surveyed, with prices for residential broadband generally below the European average; and

• The UK offers a wider availability of unmetered services than other countries surveyed.

The findings are set out in consumer research and a benchmarking study comparing Internet services in the UK with other European countries published today by Oftel.

David Edmonds, Director General of Telecommunications said today:

"Growth in Internet access, coupled with some of the lowest prices in Europe, is excellent news. Oftel’s policy of creating competitive markets for Internet access continues to drive the growth in Internet access.

"Prices in the UK are cheaper for dial-up than all other countries covered in Oftel's benchmarking research, so it is not surprising that half of UK homes are now connected to the Internet.

"Oftel’s research shows that a further one million consumers could upgrade to broadband over the next 12 months. We have a growth rate stronger than both France and Germany.

"Our research shows that 90 per cent of Internet customers are happy with their overall service. We look forward to these trends continuing."

Notes to editors:

1. Oftel has today published the following quarterly research reports:

Consumers' use of fixed telephony - August 2003 at http://www.oftel.gov.uk/publications/research/2003/q14fixres1003.pdf
Consumers' use of mobile telephony - August 2003 at http://www.oftel.gov.uk/publications/research/2003/q14mobres1003.pdf
Consumers' use of Internet - August 2003 at http://www.oftel.gov.uk/publications/research/2003/q14intres1003.pdf
Business use of Internet - August 2003 at http://www.oftel.gov.uk/publications/2003/q14intbus1003.pdf
How to access the Internet at home, consumer guide evaluation - July 2003

2. Oftel has also published an International benchmarking report of Internet services covering both basic dial-up access and broadband services. The report covers Internet services in France, Germany, Sweden, United Kingdom and the US (the States of Ohio and California are used for dial-up services; the study covers a number of the largest providers of broadband who offer services across a range of States). It can be viewed on Oftel's website at http://www.oftel.gov.uk/publications/research/2003/benc_doc1003.pdf

3. All Oftel's research is available on Oftel's website at http://www.oftel.gov.uk/consumer/about/research/index.htm. Hard copies are available to the media from Oftel's Press Office on, telephone 020 7634 8991, and to the public from Oftel's Research and Information Unit, telephone 020 7634 8761.