Internet more important than holidays, finds Ofcom

Despite the recession, communications services such as broadband have become such an integral part of people’s daily lives they are reluctant to give them up, according to Ofcom.

Research by the telecommunications regulator found these services are no longer considered luxuries; with around half of UK consumers saying they would sooner cut back on other things such as eating out and holidays than lose their internet or mobile phone and pay TV services.

Peter Phillips, Ofcom partner, strategy and market developments, said: " Despite the recession, people are spending more time watching TV, using their mobile phone or accessing the internet.”

Ofcom's sixth Communications Market Report found that to save money and keep these services, 47 per cent would choose to cut back on going out for dinner, 41 per cent on DIY and 41 per cent on holidays. This compares with only a fifth (19 per cent) who would cut back on mobile phone spend, 16 per cent on TV subscriptions and 10 per cent on their broadband services.

However, despite their love of these technologies, consumers said they want value for money. Nearly one in two (47 per cent) said they are more likely to take a bundle of services now than they were 12 months ago.

Around a quarter of consumers said they would be more prepared to shop around for their mobile phone service and broadband provider than they were a year ago (29 and 19 per cent respectively).

Ofcom also found there is a massive trend towards ‘Sim only’ mobile phone deals with seven in 10 people opting to keep their handset rather than upgrade, in return for a cheaper contract.

The report said consumers are also taking more control over their TV schedules. Thanks to faster broadband connections, digital video recorders (DVR) or catch-up services such as the BBC iPlayer on TV and online, people are choosing to watch programmes at a time that suits them.

More than three-quarters of TV viewers (78 per cent) said they enjoy programmes more because they had access to a catch-up service or DVR.

Overall take-up of broadband reached 68 per cent of households by the end of the first quarter of 2009, up from 58 per cent on the previous year. This is not just fixed-line services, as mobile broadband is also becoming more popular.

In May alone there were more than a quarter of a million new mobile broadband connections, up from 139,000 new connections in May 2008.

Ofcom has also also published separate Communications Market Reports for the UK's Nations and Regions.