The regulator's second annual Communications Market report puts consumers' average spending on communications services -- TV (including the licence fee), radio and fixed and mobile telecommunications -- at more than £1,000 a year. This is a third higher, even without inflation, than average spending in 2000.
The increase is largely due to the popularity of mobile phones and broadband, but is also driven by subscription TV.
Increasing competition in fixed-line phone and broadband services has reduced prices, taking the number of broadband connections to an estimated 8.1m as of the end of June.
Stephen Carter, Ofcom chief executive, said: "For consumers and businesses, these services are becoming cheaper, faster, more capable and even more important."
Ofcom believes that in 2010 the number of households that will be able to view TV over broadband will exceed the number of households watching only analogue TV.
Consumers have boosted the TV industry by spending money on subscription TV, teleshopping and interactive services. TV industry revenues grew by 9% from £9.3bn in 2003 to £10.1bn in 2004.
Subscriptions, excluding the licence fee, generated £3.6bn in revenues in 2004, up 10% on 2003. Teleshopping generated £178.7m in 2004, but Ofcom did not measure teleshopping revenues in 2000.
The size of the overall communications market, dominated by telecommunications, was £55.9bn in 2004.
In the radio industry, consolidation after the Communications Act relaxed ownership rules led to more than one in 10 analogue licences changing hands in 2004.
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