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Consumers in the UK want to save money on communications but are still willing to pay for services such as broadband.

That is according to a new report from Ofcom, which has revealed that Britons would rather cut back on a holiday or eating out than their high-speed internet connection, with just ten per cent of those questioned saying they would reduce spending on broadband.

It also revealed that customers place high importance on things like mobile phones and pay-for TV services.

Ofcom's Communications Market Report indicated that the recession is encouraging Britons to shop around for deals in order to save themselves money.

It also revealed that bundling services has increased in popularity since the onset of the economic downturn.

Peter Phillips, Ofcom Partner, Strategy & Market Developments, said: "We are becoming more canny about the way we pay for these services.

"Almost half of us economise by taking a bundle of communications services from a single supplier, while one fifth opt for cheaper mobile contracts which don't include an expensive new phone."

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