New free directory enquiries service to save consumers £272 million[1]

Five years [2] since free directory enquiry services were replaced by paid-for 118 services, it seems that the tide is turning again.

A new free directory enquiries service could well mark the end for consumers having to pay for a telephone number.

New free directory enquiries number could save callers £272 million[1] a year.

Costs between paid-for services vary by up to 41%[5].

Yellow Pages is most expensive at 93p for a one minute call and 192.com is the cheapest at 55p[5].

Consumers beware: just 2 out of over 100 directory enquiries lines are free.

Consumers will be able to save up to£272 million a year[1] following the launch of the new 0800 100 100 free directory enquiries service, according to independent price comparison and switching service, uSwitch.com.

The new service could signal the end of paid-for 118 services, labelled by some as 'expensive flop'[3].

The new service will be funded through advertising and customers will have to listen to a 20 second advert before they get the number they called to obtain.

For many, however, this will be a small price to pay for free information.

According to reports, 378 million[4] directory enquiry calls are made in the UK every year, so a new service will enable consumers to save an estimated £272 million a year[1].

There are dramatic differences in costs between 'paid-for' directory enquiry services - charges can vary by as much as 41%[5].

An average one minute call costs consumers 72p per minute from a landline, but services such as Yellow Pages' 118 247 charge as much as 93p, and costs rise further if calling from a mobile.

Steve Weller, Head of Communications Services at uSwitch.com comments: "The introduction of free directory enquiries is a welcome move and will entice customers back into this market.

We expect the new service to be very well received - most callers will be more than willing to listen to some adverts at the start of the call if it saves them money." 118 services are going to find it harder to compete if they continue to enforce their existing charges and we may see some providers merging or pulling out of the market altogether.

There are over 100 different 118 providers in the UK but just two of these are free.

Other directory enquiries services will need to think laterally about the way they are funded if they are to avoid the risk of becoming extinct." 1.Using the 378 million calls made a year to directory enquiries and the average charge after a one minute call (72p) across the eight paid-for services highlighted in the below table, a figure of £272,161,000 is established.

This money can now be saved due to the new free directory enquiries services.

2.

In December 2002 the market for directory enquiries opened up to a wide range of companies offering new products and services in addition to the basic DQ service.

These services operate on new 6-digit numbers, all starting with 118.

3.

According to the National Audit Office as quoted in Daily Mail 8th February 2008.

4.

According to reports on 9th February 2008.

5.

Difference in cost between the most expensive provider and the cheapest for the first minute (excluding the free services), taking fixed charge and cost per minute into consideration.

Yellow Pages being the most expensive (93p) and 192.com being the cheapest (55p).

6.

Source: Ofcom 2007.

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