Ofcom today fired a "warning shot" across the bows of the communications industry, accusing it of failing to understand or meet the needs of customers, particularly older people, lower income households and small businesses.

The watchdog's Independent Consumer Panel published research indicating that some consumers are floundering under a barrage of information and confusion which puts them off taking advantage of new technologies.

Of particular concern to the panel is that older people and lower income households are becoming disconnected from the communications revolution.

The study found that awareness and understanding of communications technologies declines significantly with age; at 65 only one in five people keep themselves abreast of technological changes such as broadband and digital radio.

It also noted that low income households have a higher reliance on mobile phones than fixed lines, and are spending proportionally more than higher income households for their phone bills through prepayment deals.

Colette Bowe, chairman of the Ofcom Independent Consumer Panel, said: "Our research provides a firm stake in the ground for the communications market.

"It is of serious concern to us that so many customers feel it is so hard to grapple with new advances related to phones, TV, radio and the internet.

"This is a wake-up call for the industry to listen to all its customers, not just the young. It makes business sense to do so and the industry risks turning off a significant amount of potential customers if it doesn't act now."

The research also revealed that older users and people with disabilities feel frustration in terms of understanding new technologies and services as well as the physical equipment.

Disabled people under 65, for example, reported twice the level of difficulty in using mobile phones compared to the UK average.

Ofcom said that consumers, who it believes are suffering from "information overload", need clearer information about the benefits of individual technologies and an easier way to compare tariffs.

In response to the high level of frustration revealed in the research, the Independent Consumer Panel will be holding workshops with industry and stakeholder groups to look at how to tackle the main issues.