Report criticises directory enquiry services

Consumers are paying more for a new directory enquiries service, which has "no obvious improvement in quality", the National Audit Office (NAO) has said.

A new report into the change from the 192 directory enquiry service to the 118 service found "significant variation" in prices for the service and concluded that the majority of callers were now paying more for directory enquiries than they did under the 192 service.

NAO research found that a quarter of all the new services were actually cheaper. However, the report said that, although service providers were required to publish pricing information in all advertisements, because of the huge array of numbers available, consumers were not always able to find the best price.

The report found that the number of people using directory enquiries had now fallen. This was attributed to confusion and perception of higher costs, but also because of an increase in the use of alternative information sources, such as the internet.

NAO figures indicated that, in November 2004, 86% of directory enquiry requests received the correct telephone number. However, since no accurate data had been recorded regarding the 192 service, the NAO said it was "not possible" to compare the accuracy of the two services.

However, the report also found that there were cheaper numbers available, which provided an "accurate and reliable service" and that consumers now had "considerable choice" as well as a new range of additional services, including call-connection, 'text back' (texting the requested number to a mobile phone) and cinema listings.

Opened up to competition in 2003 by Oftel (now Ofcom) the old directory enquiries service, on 192 and 153, was replaced by a choice of over 200 different 118 numbers, which Oftel believed would give consumers greater benefits including better prices and choice of services.

However, the NAO report said that Oftel should have conducted "a more detailed economic analysis" of the characteristics of a competitive market and the benefits it would give to the consumer. However, the report concluded that Oftel had "handled the liberalisation project well" and had followed "good regulatory practice".

Ofcom said that it would undertake further market monitoring and consumer research with the aim of publishing price and performance information, in order to help provide consumers with information to help them choose the best service.

(KMcA/SP)