Press Release - Directory Enquiries: From 192 to 118
18 March 2005
Sir John Bourn, Head of the National Audit Office, told
Parliament today that not all consumers have yet benefited from the
move from 192 to 118 directory enquiry numbers, but that the market
was still evolving. Specifically,
- the average residential consumer is paying more for a directory
enquiries service with no obvious improvement in quality. But there
are cheaper numbers available providing an accurate and reliable
service;
- there are concerns that public sector organisations are not
taking advantage of the opportunities offered by competition;
- callers do now have considerable choice and a range of
additional services are available;
- the number of people using directory enquiries has fallen. This
is partly due to confusion and perceptions of higher costs (of
those using directory enquiries less frequently, one in five
consumers wrongly believed that the old 192 service was free) but
also as a result of a greater use of alternative sources of
information, such as the internet; and
- the actual liberalisation process was handled well by Oftel,
following good regulatory practice.
In 2003 Oftel – which has since been subsumed into Ofcom –
opened the directory enquiries market to competition and the
numbers 192 and 153 were replaced by a choice of over 200 different
118 numbers. Oftel believed that competition would deliver benefits
for consumers: an improved quality of service; an increase in price
competition; and greater choice of innovative services. The
National Audit Office found that:
- Quality of service: in November 2004, 86 per
cent of directory enquiry requests received the correct telephone
number. 19 of the 30 numbers surveyed provided the correct
information to at least 90 per cent of requests. In common with
other European countries, Oftel did not collect accuracy data on
any of 192 services which means that it is not possible to compare
post and pre-liberalisation accuracy;
- Price: there is now significant variation in
prices and the majority of callers now pay more than they did for
requests using 192, even though the National Audit Office’s
analysis found that one quarter of services are cheaper. Service
providers are required to publish pricing information in all
advertisements for their services but it is not easy for callers to
find the best price; and
- Choice: a wide range of directory assistance
services are now available, for example call-connection, the number
texted to a mobile and cinema listing.
Before deciding to introduce competition, Oftel drew on evidence
from a range of sources including the experience of other countries
that had already made such changes. This evidence did not indicate
a conclusive case on the best approach. In particular, there was
scope for Oftel to have conducted a more detailed economic analysis
of the characteristics of a competitive market and the extent to
which this would deliver benefits for consumers. In the absence of
a compelling case to retain the existing arrangements, Oftel
decided to proceed with the liberalisation. Having made this
decision, Oftel handled the liberalisation project well, following
good regulatory practice.
Sir John Bourn said today:
"The outcome of this market liberalisation for the
residential caller has been more choice and innovative services but
also an increase in average prices and uncertainty over improved
quality. I would encourage: Ofcom to maintain an effective
competitive market by raising consumer awareness and continuing to
ensure a level playing field; individual callers to find out more
about the available services and best deal; and businesses to take
advantage of the opportunities created by
competition."
Notes for Editors:
- On 29 December 2003 Ofcom took over the duties and
responsibilities of Oftel, along with four other communication
bodies (the Broadcasting Standards Commission, the Independent
Television Commission, the Radiocommunications Agency and the Radio
Authority). Ofcom’s aim is to further the interests of
citizen-consumers through a regulatory regime which, where
appropriate, encourages competition.
- The designated number range for new directory enquiries
services was 118 (XYZ) in line with a recommendation of the
European Committee for Telecommunications Regulatory Affairs to
enable competition and provide harmonised cross-European
services.
- The publication of the NAO's report coincides with the
publication of research by Ofcom and the premium rate services
regulator ICSTIS into the performance of the liberalised 118
directory enquiries market. Ofcom's research is also strictly
embargoed until 0001 Friday 18 March. For further information
contact Ofcom Media Office on 020 7981 3033.
- Press notices and reports are available from the date of
publication on the NAO website, which is now at
www.nao.org.uk. Hard copies can be obtained from
the Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
Head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 26/05
All enquiries to Mark Strathdene, NAO Press Office:
Tel: 020 7798 7183
Mobile: 07748 181693