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Calling directory enquiries

The directory enquiries market in the UK was deregulated in August 2003, when competition was introduced in the form of a vast range of 118 numbers. But which one do most consumers use? Competition in the market is supposed to put consumers in control and save them money, but is this the way 118 has worked out?

• 118: The early days
• Accuracy improves but the cracks start to show
• Confusion
• Today’s 118 market

118: The early days

Soon after 118 numbers were introduced, the then regulator of the home phone industry, Oftel, conducted a ‘mystery shop’ survey of 40 providers. It found that only 62% of consumers were being given the correct number, and only 8 out of 10 were offered a refund when they complained. Even this early on in the 118 story, people were complaining that the service was confusing and expensive. Things could only get better.

Accuracy improves but the cracks start to show

By June 2004, the market had seen some improvement, with the new regulator –Ofcom - praising 118 services for their accuracy levels and lower call charges. A new study found that 87% of numbers given were now correct, but around 25% of people claimed to be using directory enquiries less than they used to.

By this time, the majority of respondents to Ofcom’s survey could only name one 118 provider. In most cases, this was the provider with the most expensive advertising campaign – 118 118 – which is not the cheapest available, and can be more expensive than the old BT number, 192. It seems that the plan to introduce competition for consumers’ benefit had backfired.

Confusion

In 2005, the National Audit Office published its own independent research into the 118 market. Its report concluded that residential customers were now paying more for directory enquiries than they had been under the 192 system. Customers were also still confused by the numbers on offer and were increasingly using the most relentlessly advertised numbers. The NAO even went so far as to say that Oftel was wrong to deregulate a market where “competition was not needed and is not helpful”.

Today’s 118 market

It’s not looking great for 118, but there doesn’t seem to be any major change on the horizon. Every study seems to show fewer people using 118 services and more complaints of high charges. Perhaps, as more companies (including the Post Office) launch 118 numbers, the extra competition will force a real price war and the consumer will win out in the end.

Until then, use free online services like yell.com and bt.com if you need a number. If you really have to use a 118 service, the table below compares the most popular 118 numbers with some of the lesser-known ones that might save you some money.