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UK broadband prices fell significantly between 2004 and 2012, Ofcom has revealed.

Research conducted by the communications regulator shows the average amount spent on a residential fixed broadband connection was £16.38 per month in 2012.

This was down from £31.79 per month eight years earlier - highlighting the impact of continued industry innovation and greater competition during this period.

The fall in prices occurred against a backdrop of increased broadband adoption, with a rising number of homes and businesses signing up.

At the start of the study period, many premises were reliant upon dial-up technology for their internet connection.

But over the course of the last decade, broadband has rendered this technology largely obsolete, other than in the remaining few network 'not-spots'.

While just six per cent of households had a broadband line in 2003, more than seven out of ten homes now take advantage of a fixed connection.

"Competition has driven the availability of low-cost broadband deals, some now starting at £2.50 a month plus line rental," Ofcom stated.

The regulator said this trend has been "underpinned by regulatory intervention" to support increased competition in the long-term interests of consumers.

"Total spending over the past ten years has increased, driven by increased take-up of broadband and progressively higher speed packages," it stated.

Ofcom noted that consumers are using their broadband more and more, with laptop and desktop internet users spending at least 35 hours online each month.

"The average household now owns more than three types of internet-enabled device, with one in five owning six or more," the regulator stated.

"Take-up of fixed broadband services has now increased to 71 per cent of households, with more and more of these connections being super-fast."

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