Oftel's figures show that 45% of UK households are connected to the internet, compared to a figure of 30% at the same time last year.
David Edmonds, Director General of Telecommunications, said today:
"Dial-up narrowband internet access is how most consumers start using the internet, so it is important we have a thriving and competitive internet access market. Dial-up internet access also acts as a stepping stone to faster broadband services as people use the internet to study, shop and for entertainment.
"Action by Oftel, notably the requirement on BT to offer wholesale unmetered internet access, has helped to put this flourishing market in place. The network charge control also offers robust protection to consumers."
However, Oftel's findings exclude broadband internet access using DSL, unbundled local loops or cable modem services.