Number of homes online is falling

The number of homes in Britain connected to the Internet has fallen for the first time, a new study showed today.

In May, 40% of homes were connected to the Internet but in August the figure fell to 39%, telecoms watchdog Oftel found.The drop is the first recorded fall since Oftel began measuring the number of homes connected to the web.The fall will add to speculation that home use of the Internet has reached saturation point but Oftel advised caution.

A spokesman said: "It is too early to say from a single quarter's results whether this represents a change in the long-term trend. We will continue to track home penetration and adult usage."

The watchdog first began recording home Internet use in January 1999 when just 12% of homes were connected.Since then the numbers have steadily risen, reaching 20% in December 1999, 30% last December and 40% in May.The new study also found home Internet users were more likely to have other technologies including mobile phones and digital television.

People more likely to use the Internet at home were found to come from the higher income groups, larger households and younger and middle-aged households.However, the report also found over the last year there had been a gradual increase in the number of lower income groups being connected.

"This may be due to increased availability and affordability of access methods, such as digital television and mobile phones," said the spokesman.

During August, consumers claimed to be spending an average of just over eight hours a week online.