1.1 million homes and offices across the UK cannot get broadband speeds that meet their typical needs, Ofcom has stated.
According to the regulator, this problem is particularly acute in rural areas, where 17 per cent of premises are currently without adequate broadband services, compared with two per cent in urban locations.
However, Ofcom's data indicates that the situation is improving, as the overall number of homes that cannot get decent broadband is down from 1.6 million last year.
Figures also showed that access to superfast broadband offering download speeds of at least 30Mbps is improving across the country.
This option was available to 27 million homes and small businesses by May 2017, compared with 25.5 million a year earlier.
Furthermore, Ofcom noted that a growing number of people are taking advantage of this option, which it said reflects rising demand for faster speeds.
Indeed, the number of premises purchasing superfast connections has risen from 9.1 million to 11.2 million in the last year.
Ofcom also reported greater availability of full-fibre broadband, with fibre optic cables extending all the way to a property.
Availability has risen from two per cent to three per cent in the last year, while Ofcom expect this figure to increase in the next few years, following recent announcements from major network operators to invest more heavily in the technology.
Commenting on the findings, Chief Technology Officer Steve Unger said broadband coverage is improving, but stressed that "urgent work" is still required before households and businesses get the services they need.
"Everyone should have good access to the internet, wherever they live and work, so we are supporting plans for universal broadband, and promoting investment in full-fibre technology that can provide ultrafast, reliable connections," he commented.