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In its latest Internet and Broadband Brief, Oftel says that there are 1,674,000 ADSL users and an estimated 1,331,000 cable subscribers. These figures do not include businesses with leased lines.

Fifty per cent of UK homes now have Internet access, though a large majority are still using

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narrowband, dial-up services. Over eighty per cent of the UK homes and businesses are now within range of a DSL-enabled exchange, compared to 66 per cent a year ago.

Although the rise in enabled exchanges and falling prices appear to be the main reasons for the rise in broadband usage, e-Minister Stephen Timms yesterday stressed the role of content.

'Broadband content is an essential driver of broadband uptake, enabling users to gain increasing value from using broadband,` he said. `It has a key role to play in helping us achieve our target of having the most competitive and extensive broadband market.'

Oftel says that the cost of residential cost of broadband in the UK is much cheaper than Germany and the US, but slightly pricier than France.

In the business market recent price cuts in other countries have made the UK one of the more expensive places to connect. However Oftel says this will change if recent price cuts by BT are fed through to customers.