UK consumers are benefiting from cheaper communication services than the US and other major markets in Europe, largely because of savings made on mobile deals.

This is one of the findings from Ofcom, the UK telecoms regulator, in its latest International Communications Market Report.

The watchdog found that a typical handset with 200 minutes, 50 texts and 200MB of data costs on average £14 per month in the UK, compared with £57 in the US.

Ofcom compared eight mobile phone usage profiles, ranging from a basic handset with a low call allowance, to a premium smartphone with a large call, text and data allowance.

The average price across all eight of these profiles fell by 23 per cent for UK consumers during the year.

“The report confirms that consumers in the UK are benefiting from one of the world’s most price competitive marketplaces for communications services,” asserted James Thickett, Ofcom’s director of research.

“Telecoms bills have been falling in real terms in the UK for the past ten years. However, consumers are not just benefiting from cheaper deals – they are also getting much more for less, as the quality and range of telecoms services has expanded hugely in that time.”

When taking all communications services together, including fixed broadband, UK is ranked number one by price, followed by Italy, France, Germany and Spain.

The US occupies sixth position.

But the picture in the UK and Europe might not be as rosy as it first appears, at least as far as mobile is concerned

“In Europe, regulators have emphasised competition over investment,” said Steven Hartley, an analyst at consulting firm Ovum, quoted by the New York Times.  “We are now at a point where cheap deals don’t necessarily mean the best value for consumers.”

And compared with the US and developed markets in Asia, Europe has been slow to roll out 4G. Lower bills have not translated into faster data connections in Europe.

According to a report by Cisco, cited by the New York Times,  the average mobile connection speed in France in 2012 (the latest figures available) was 1.3Mb/s. That compares to 2.5Mb/s in the US in the same year. The gap seems set to grow.

According to report by GSMA Intelligence, the US currently accounts for almost half (46 per cent) of global LTE connections today (thanks to major investment by AT&T, Sprint, T-Mobile US and Verizon Wireless). Asia, however, is expected to account for almost half (47 per cent) of the base by 2017, fuelled by 4G launches in the world’s two largest mobile markets – China and India.

“Europe’s economy may become weakened if it doesn’t compete with other countries that are rolling out fast data networks,” said Hartley. “There’s a greater good to be served by giving people faster mobile connectivity.”