Industry regulator Ofcom has revealed figures which show that the price of broadband in the UK is considerably lower than in the majority of other nations around the world.

The recent report analysed figures from various developed nations including Germany and Italy, identifying that the cost of most digital TV, home phone, broadband and mobile services is lower in the UK than anywhere else.

The figures concluded that a family of four in the UK could pay as little as £108 for mobile phones, broadband, home phone and TV packages to cover the entire household. This includes an 8Mbps broadband connection and mobile phones for every member of the family.

Deals covering all of these services in a bundle, which is usually the cheapest way in which families can pay for them, would cost customers in Italy 28 per cent more. In terms of value, Italy is the UK’s closest rival, although the gap in average prices is significant.

Ofcom’s CEO Ed Richards indicated that the low price of broadband in the UK was due to a highly competitive market. With BT broadband deals and bundles competing with comparable packages from Virgin Media and Tiscali, prices are likely to stay low and continue to fall in the UK over the coming months.

Mr Richards also cited innovation within the UK broadband industry as key to its continued success and the wide availability of digital services despite recent criticism of government plans for the future.

In other research from Ofcom, it was discovered that over 35 per cent of all UK households take advantage of BT broadband deals or similar in order to receive additional services including home phone and digital TV from a single provider.

O2 has been slow to improve the levels of 3G coverage that it can offer to its UK customers, with its current coverage levels of 84% putting it at the bottom of the pile when contrasted with other UK providers.

After recent studies identified Orange as the provider of some of the cheapest mobile broadband in the UK, as well as boasting 93% 3G coverage and a very satisfied customer base, other networks have had to react fast in order to save face.

O2 has therefore announced that it will be investing significant sums into expanding the reach of its 3G networks, with a total of more than 1500 new 3G base stations being built or converted to utilise the new technology.

It is not clear just how many new masts will go up around the UK, but converting existing 2G masts to 3G will certainly provide better coverage in the most underdeveloped areas.

London will of course be a focal point of the investment, with a total of 200 new base stations becoming active over the next year and a proposed group of 40 authorised for an update by Christmas 2009.

O2 has been famously nonchalant in its approach to 3G coverage up to this point and it was subject to threats of a potential fine back in 2008 when Ofcom reported that it was not adhering to the coverage levels dictated by its 3G licence.

According to O2 officials, the company did not fully appreciate the level of public demand relating to mobile broadband. It has therefore been focusing on its home broadband service, which has resulted in O2 becoming one of the most popular fixed line providers in the country.

Those looking for the cheapest mobile broadband in the UK could find their options greatly improved as a result of the increased competition offered by O2’s wider 3G coverage.

Consumers around the country are constantly hunting for the cheapest mobile broadband in the UK. In many cases this involves using price comparison sites to size up the various deals. Prices will vary according to the volume of data a customer anticipates using every month and in most cases these limits must be strictly observed in order to avoid paying extra.

As you may expect, there is industry pressure to alter the way in which consumers pay for their mobile broadband usage as usage levels and user numbers continue to grow, placing ever greater pressure on the available bandwidth. Falling prices also mean that companies are having to handle a 400% rise in mobile broadband use, offset only marginally by a meagre 40% rise in real revenues.

News from a recent study by Camiant showed that consumers and the networks are in agreement about one thing: the structure of mobile broadband price plans is in need of a serious rethink. It is clear from the study that consumers could be faced with ever stricter data limit enforcement, resulting in significant penalties for exceeding their allowance and as such a different approach, such as connection management, would be preferable.

The survey also revealed that consumers across Europe are actually unsure as to the rules and restrictions of their existing mobile broadband price plans, with data caps confusing many and ignored by even more. As such, a price structure which restricts mobile broadband speeds during peak periods but has a relaxed approach to overall data allowance would be seen to be the best solution to everyone’s problems.

It was also revealed that consumers would encourage networks to offer unlimited usage for a single mobile broadband function, for example gaming or downloading, whilst retaining the data cap for other applications. It is clear that flexibility and customisation are going to be integral to delivering the cheapest mobile broadband in the UK in years to come.