Home Internet use in Ireland has now hit 50 per cent of the population, according to the Commission for Communications Regulation.
Almost a fifth of respondents use the world wide web on a daily basis while 40% said they use it several times per week.
More than 18% said they used an operator other than eircom for their access.
However, one in four said they switched back to eircom in the last 12 months.
Comreg reported that 50 per cent of pay-TV households were now digital subscribers.
The quarterly report for Q3 2003 also found that Ireland was the fifth-cheapest country in the EU for residential fixed line telephony services.
Comreg chairperson, John Doherty said today: "The higher levels of Internet take-up and usage are encouraging for flat rate and DSL adoption.
"We have now one of the most competitive markets for DSL in Europe."