The regulator's chief operating officer Ed Richards emphasised the "dramatic" nature of change as Ofcom released its latest facts and figures in its annual communications market report.
"The sector is being transformed by greater competition, falling prices and the erosion of traditional revenues and audiences," Richards said. "A new generation of consumers is emerging for whom online is the lead medium and convergence is instinctive."
Consumers have taken advantage of market competition and falling prices to increase their usage of broadband internet, digital TV and radio services, and mobile phones.
The number of households with broadband connections increased by 63% between 2004 and 2005, to a total of 9m, and the number of households with digital TV also increased by 18% in the year to March 2006 to a total of 18.3m.
The internet is the favoured medium for young adults aged 16-24, who spend 21 minutes a week more time online than the general population, but seven hours less watching TV and an hour and a half less listening to radio.
Social networking sites such as Bebo and MySpace have soared in popularity with this age group, with 70% having used one and more than half using them at least weekly.
They also use their mobile phone more than the general population, making seven more calls and sending 42 more texts per week.
Advertising revenue has tracked these changes. Online ad revenues have grown from £0.17bn in 2001 to £1.3bn in 2005, which is more than a third of TV ad revenues, at £3.8bn last year.
TV ad revenues grew 2% during 2006, but were outpaced by 9% growth in TV subscription revenues.
Radio ad revenues were more than £500m in 2005, but have not grown in real terms since 2001. Taking the estimates of the BBC's radio funding into account, Ofcom said total funding for UK radio was £1.15bn in 2006, down 2.2% on 2004.
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