Time not always money, according to Ofcom report

According to Ofcom’s latest report, people in the UK are spending record amounts of time using communications services, but are paying less for them.

The report shows that in 2007 we spent an average of 7 hours and 9 minutes a day using communications services (such as watching television, talking on landline phones, surfing the net etc) – an increase of 6 minutes from 2002.

The greatest increase occurred in mobile and internet use. People now spend 10 minutes a day texting - double the amount of time spent in 2002, and 24 minutes on PC’s and laptops - up from just 6 in 2002.

Despite the growing use of communications technologies, the report found that people are now paying less for these services. Overall household spend on communications dropped 1.6 per cent in 2007 from the average spend in 2006, and fell 4.4 per cent since 2004.

This is particularly significant when compared to retail and food industries, whose goods have seen dramatic price increases over the same period.

Ofcom outlines 3 primary reasons for the decrease in spending. These are:

1.  Discounts from bundled packages: Consumers are increasingly buying bundles of communications services - which are generally cheaper than buying individual services from different providers.
2.  Lower prices for broadband: The average household spend on internet and broadband services fell from £9.87 in 2006 to £9.45 in 2007.
3.  Bargain hunting: an increasing amount of people are switching between providers in order to get the best deal.

Peter Phillips, Partner, Strategy and Market Development, said: “We are spending more and more time with our communications devices but spending less on them. Our devotion to watching, listening and staying in touch wherever and whenever we want shows no sign of diminishing and, with healthy competition, overall prices offer increasing value for money. That is what consumers demand and what Ofcom helps deliver.”

Related Links:
Ofcom Communication Nation Report
XLN Broadband