Guernsey's telecoms operators made £78m in the first half of last year.
It marked a 7% increase in turnover on the previous six months, and the regulator said some of it was due to the growing broadband market.
The Office of Utility Regulation said there had been an impact on landlines from competition from mobile phones and internet services, such as Skype.
Michael Byrne, director of regulation, said he believed customers are benefitting from more competition.
He said the States decision to commercialise Guernsey's telecoms industry seven years ago has been vindicated as customers were receiving a better service.
Mr Byrne said: "The report shows the continuing growth of broadband, which is important given its contribution to business and education. Consumers are being more alive to the options they now have to save on the telecoms bills."
There were 22,600 internet customers in Guernsey by June, a 2% rise in the six month, and the total internet usage including dial up stands at 35%.
The amount of time spent talking on landlines went down by 6%, with revenue down 4%.
Mobile revenue was also down, by 5%, but usage was up by 4%, which Mr Byrne said "would suggested that competition is having an impact on prices in the mobile market".
Sure remained dominate in the mobile market with 74% of the market. Wave Telecom had 19% and the relative newcomers to the islands, Airtel-Vodafone, had 7%.