Digital divide across UK narrowing

The digital divide between the UK nations is diminishing according to Ofcom research published today.

In its Communications Market Report for the Nations and Regions of the UK Ofcom examines availability, take-up and usage of internet, telecommunications and broadcasting services. It compares findings across Wales, Scotland, Northern Ireland and the nine English Regions.

This is the second time Ofcom has undertaken research across the Nations and Regions of the UK. Last year's report showed significant differences, particularly in take-up levels of broadband and digital television, both between the nations and also between those living in urban and rural areas.

This year's report shows those gaps are closing. In 2005 there was a twelve percentage point gap between the number of adults with broadband at home in Northern Ireland (lowest at 24%), Wales (25%), Scotland (31%) and England (highest at 36%). This year's report shows that by 2006 this gap had reduced to three percentage points. Take-up in England stood at 45% and in Scotland, Northern Ireland and Wales had reached 42%.

In 2005 the gap between the nations in terms of digital television take-up was even larger at 19 percentage points (Wales at 72%, England at 66%, Scotland at 60% and NI at 53%). By 2006 this gap had reduced to 13 percentage points (Wales at 82%, England at 75%, Scotland at 76% and NI at 69%).

KEY FINDINGS ACROSS THE UK

BROADCASTING

• People in Northern Ireland watch less television than the rest of the UK (3.3 hours per day). People in Scotland watch the most of all the nations at 4.1 hours per day. Viewing of television has fallen further in Northern Ireland (by 12%) over the four years to 2006 than in any other nation (UK average 2.3%).

• The report shows that ITV's digital-only channels (ITV2, 3 and 4) have gained more viewing share (2.8 percentage points) than those of the BBC (1.3 percentage points), C4 (1.4 percentage points) and C5 (0.2 percentage points) between 2002 and 2006.

• Local commercial radio attracts a larger share of listening hours in Scotland (43%) than in any other nation (UK average 32%). BBC local radio attracts at least twice the share of listening hours in Northern Ireland (27%) than in the other nations (UK average 11%). BBC UK-wide radio attracts more listeners in England and Wales (45% and 46%) than in Scotland (36%) and Northern Ireland (27%).

INTERNET AND TELECOMMUNICATIONS

• The proportion of UK households able to receive competitive broadband and phone services through local loop unbundling (LLU) increased by 27 percentage points over the year from 40% at the end of 2005 to 67% at the end of the 2006. LLU enables providers other than BT to fully control the equipment in the exchange and to offer a range of competitive phone and broadband services. The number of people able to receive LLU services increased from 0% in 2005 to 10% in 2006 in Northern Ireland.

• Almost three out of ten UK households (29%) took multiple services from a single telecoms provider in 2006 (fixed line phone and broadband for example). Bundling is highest in Northern Ireland (32%) and lowest in Wales at 22%. Growth in bundling has been fuelled by growing broadband take-up and increasing LLU availability.

• Average reported monthly household spend on mobile phone services (£42.18 based on an average two mobile phones per household) is greater than reported spend on fixed-line and internet combined across the UK (£31.18).

DIGITAL COMMUNICATIONS IN RURAL AND URBAN BRITAIN

Ofcom also carried out research into take-up and availability of communications services in rural and urban areas in the UK. A similar proportion of people who live in rural areas (80%) own a mobile phone compared to 81% in urban areas. The research also showed that DAB digital radio ownership in rural households (17%) is almost equal to that in urban households (18%). More people in rural areas (94%) have a fixed line phone than in urban areas (89%) whereas 41% of adults in rural areas have broadband internet at home compared to 45% of adults in urban areas.

KEY FINDINGS IN NORTHERN IRELAND

• Ofcom conducted research into the problem of inadvertent mobile roaming in Northern Ireland. This is where mobile phone users in the border regions pick up a signal from mobile networks in the Republic at added expense to consumers. The research shows that an estimated 74% of users in the border regions (approximately 105,000 people) experience this problem. Based on an estimated 10 million calls per year made whilst inadvertently roaming the cost to consumers could be up to £10.9m per year (based on an average call length of 2 minutes) or around £100 per year for each person living in the affected areas.

• In 2005 local loop unbundling was absent from Northern Ireland. By 2006, 10% of premises were connected to an unbundled exchange.

KEY FINDINGS IN WALES

• There were more Wi-Fi hotspots per million people in Wales (193) than in the other UK Nations (171 in England, 125 in Scotland and 84 in NI). Wales also ranks higher than Germany, the USA and Japan.

• Viewers in Wales were more likely to be concerned about violence (63% vs. 55% UK average), swearing (59% vs. 53% UK average) and intrusion into the lives of others on television (66% vs. 56% UK average) than viewers in any other nation.

KEY FINDINGS IN SCOTLAND

• Scotland leads the UK in making phone calls over the internet - so called VoIP services. A higher proportion of internet users in Scotland (19%) use VoIP services than in England (18%), Wales (16%) and Northern Ireland (15%).

• Consumers in Scotland believe that having a landline phone available to every household almost as important as having an electricity supply.

KEY FINDINGS IN ENGLAND

• Some 74% of people in England can now receive more competitive broadband and phone services through the growth in local loop unbundling (LLU), a 25 percentage point increase during 2006. Availability of LLU in England was lowest in the South West at 34%, highest in Greater London at 100% and second highest in the North West at 90%.

• Ownership of DAB digital radio was highest in England (at 19% of homes), followed by Scotland and Wales, both at 14%. In Northern Ireland it averaged 11% in 2006.

Ofcom Chief Executive Ed Richards said: "The geographic gap between the digital haves and have-nots in the UK has been gradually narrowing, but" he added "we need to do more to ensure that everyone is able to benefit from the economic and social benefits modern communications offer".

Ofcom is today also publishing supplementary reports for Wales, Scotland, Northern Ireland and the English Regions. The full text of all reports can be found at: http://www.ofcom.org.uk/research/cm/cm07/