More people in disadvantaged groups are taking up telecoms, the internet and TV services, according to Ofcom.

The telecommunications regulator's second annual research and policy evaluation report, which looks at how disadvantaged people - including the elderly, disabled and low-income earners - found that more over-65s and low-income groups had taken up mobile, broadband and digital TV services since 2006.

Ninety-eight per cent of households now have digital television and more people with hearing impairments are using mobile phones; an increase by just under a fifth since 2006.

Ofcom said affordability was no longer the most significant barrier preventing people in low-income groups taking up communications services.

The increase is partly due to the better availability of pay-as-you go options and the large amount of competition in the market, which contributed to driving prices down. Ofcom said as a result a typical "basket" of residential telecoms services costs had been reduced to £69.85 a month - £35 less than in 2002.

The report also found consumers had more choice this year when it came to bundles of products and services, with 40 per cent of households taking more than one service from the same provider. This number was up by a third on 2006.