Half of all UK households now have access to the internet, and on average are paying less than their European counterparts for the privilege, according to new research published yesterday by Oftel. But the UK is still behind on broadband take-up.

The telecoms watchdog yesterday published its quarterly research reports on consumer use of telephones and mobiles, and business and residential use of the internet. It also released details of a benchmarking study of internet services in the UK, France, Germany, Sweden and some US states.

The research shows that 12.5 million UK households are now on-line, with 750,000 new connections over the last three months alone. Most of these internet customers use dial-up internet access, and at a price cheaper than the European average.

Unmetered services in the UK are more widely available than in the other countries surveyed, while broadband take-up is slower than abroad, at only 10% of the population. Oftel's research suggests this is changing, with around one million internet customers expected to upgrade to broadband over the next year.

David Edmonds, Director General of Telecommunications said:

"Our research shows that 90 per cent of internet customers are happy with their overall service. We look forward to these trends continuing."

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