Over the last few years the telecoms sector in the UK has seen a step change as consumers take advantage of new technologies. UK telecoms networks now carry far more data traffic than voice calls, and the amount is growing all the time.

In July, Oftel published the initial results of its review of the dial-up Internet access market, which show that competition in the retail market is effective.

Consumers in the UK benefit from a flourishing Internet access market offering a wide range of services at extremely competitive prices.

Oftel's research indicates that some 40 per cent of UK households - 10 million homes - now have Internet access. Meanwhile, Oftel's international benchmarking survey, published in June, shows that in some cases UK consumers pay less than those in California for dial-up Internet access.

In particular, UK consumers can choose from a range of unmetered deals, thanks to Oftel's action to provide wholesale unmetered Internet access to other operators.

While dial-up access will continue to meet the needs of many consumers into the future, traditional Internet content will be joined by a whole host of interactive services as broadband technology moves forward.

Broadband services will be delivered using a range of competing networks: BT's wholesale service, cable networks, fixed wireless access and 3G mobile phones.

In this new world, suppliers need to ensure their services meet the needs of consumers but consumers are not clear what they want since it is likely to be very different from current services. The next few years will be a time of discovery and innovation for both consumers and suppliers.

With the launch of the Government's OFCOM Bill, which sets in motion the setting up of a regulator for the converged media, I am confident that regulation too will evolve to meet the needs of new markets.