Significant growth seen in the UK broadband market is driven by bundled internet, phone and TV products, it has been claimed.

In a new report by Frost & Sullivan, it is suggested that the bundled packages are being chosen by UK and EU residents looking to take advantage of improved multi-function services.

"The growing demand for highly customised broadband-based services is also a major growth factor, as customers are willing to pay a little extra for high-quality broadband services such as video on demand and pay-per-view TV," the report explains.

While DSL is identified as the dominant broadband service, the study identifies growth in other technologies - such as fibre-based broadband for example - which the group attributes to an increase in demand for high-bandwidth internet services.

In terms of future development, the firm predicts a gradual slowdown in the broadband market, with a compound growth rate of 18.9 per cent predicted for Western Europe.

The study follows the publication yesterday of the European Commission's annual ICT progress report, in which it was found that there were 250 million regular internet users resident in the 27 EU countries.