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Chapter 5 - Consumer Response to DQ Liberalisation

DQ usage

5.1 Use of telephone DQ services appears to have fallen since the liberalisation of the market. Currently just under three in five (57%) UK adults claim ever to use telephone directory services compared to two-thirds of GB adults in October 2003 ^(-6-). The fall in usage is amongst both frequent and infrequent users of the service and is consistent with industry statistics collected by Ofcom, which indicate a drop in overall call volumes to directory services since liberalisation in August 2003.

Impact of liberalisation on DQ usage

5.2 Since the introduction of the new DQ numbers and additional 'enhanced' services, three in five DQ customers said their use of national telephone directory services has remained the same - equating a third (32%) of UK adults. However, a quarter of adults (26%) claim to be using the service less frequently, including nine per cent who said that they no longer use the service. Half of consumers currently using the service less were deterred by either perceptions or experiences of higher costs, and a minority by perceptions or experiences of poor service. Paper directories and the Internet have become increasingly important alternative sources for these consumers.

5.3 One per cent of adults claimed to have used DQ services more since liberalisation, attracted by better value for money and enhanced services. This finding is based on responses from 12 consumers so should be treated as indicative only.

Awareness of DQ changes

5.4 85% of UK adults are currently aware of the changes that were made to DQ services following liberalisation. This proportion rises to 92% amongst frequent users (at least monthly) and falls to around four in five (78%) amongst non-DQ users. Awareness grew steadily from May 2002 when monitoring began until August 2003, where it has stabilised, as shown in figure 5a.

Figure 5a: Awareness of changes to DQ services

Line Graph: Awareness of changes to DQ services - click for text version

* based on GB adults with a fixed line phone

** based on GB adults

*** the apparent fall in awareness is not significant and likely to be a reflection of the slightly different samples

Base: UK adults, unless specified otherwise (Base: variable, 1000-2000)

Number awareness and recognition

5.5 70% of adults who were aware of the changes to DQ services were able to spontaneously, and correctly, name one of the new numbers. While not significantly different to the two-thirds in November 2003 this confirms the rise in awareness reported since August 2003 (50%). Spontaneous awareness of correct DQ numbers rises to three-quarters amongst existing DQ users.

5.6 Number recognition (prompted) among those aware of the DQ changes, also remains broadly similar to that in November 2003 (85%), which equates to around seven in ten UK adults.

5.7 Awareness and prompted recognition remains highest for 118 118 (The Number UK) at 73%, followed by 118 500 (BT) at 32% and 118 888 (Conduit), 15%.

Awareness of varying pricing structures and services

5.8 In total, just less than two in five (38%) consumers aware of the changes to DQ services were also aware that the prices and services vary according to the provider used, this equates to a third of UK adults.

three in five (61%) adults aware of the changes to DQ services were aware that the new numbers charge a range of different prices;
just over two in five (43%) were aware that the new 118 directory enquiry numbers offer a range of different services.

5.9 Awareness of the varying prices and services on offer was highest amongst higher social grades and frequent DQ callers.

Awareness of costs in comparison to previous 192 services

5.10 7% of adults thought that the legacy 192 directory enquiry service was free of charge from a fixed line phone, broadly similar to August '03. The remainder suggested a range of prices, averaging about 38 pence (which is very close to the actual charge of forty pence per call), or weren't sure of the price.

5.11 Perceptions of the cost of calls to 118 numbers compared with costs to the legacy 192 services varied. The new services span a range of prices, both higher and lower than calls to 192. Around a fifth (17%) of those aware of the changes to DQ services were aware of the varying prices in comparison to the legacy DQ services, rising to a quarter amongst frequent callers. However, almost half (47%) incorrectly thought calls to all of the new 118 services were more expensive, as shown in figure 5b.

Figure 5b: Perceptions of the cost of calls to 118 services compared to the cost of 192

Base: UK adults aware of the changes to DQ services, 907 UK adults, April 2004

Use and satisfaction with new numbers

5.12 Around half (52%) of current DQ customers claimed to have called one of the new DQ numbers by April 2004 (equivalent to about 24 million UK adults), rising to 96% amongst frequent DQ callers. The proportion of consumers calling the new services does not appear to have increased since October 2003.

5.13 Consistent with awareness figures, 118 118 (The Number UK), and 118 500 (BT), continue to be the most popular choices, driven primarily by advertising and number awareness at the time of calling.

5.14 Of the 30% of adults that have selected a main DQ number to call for directory services almost two-thirds (64%) were satisfied with the service they have received, 22% claim to be very satisfied. The remaining 70% had not selected a main DQ number and therefore were not asked about their satisfaction, as this may have varied according to each provider used.

Awareness, use, and interest in new range of services

5.15 Just under half (47%) of consumers aware of changes to directory enquiries were aware of at least some of the additional ‘enhanced’ services currently available, rising from around a third reported in November 2003. This is equivalent to four in ten (41%) UK adults, as shown in figure 5c. Some of this rise is likely to be due to awareness of the ability to obtain multiple number requests, which was not included in the initial survey. Consumers remain primarily aware of onward connection, number sent by text to mobile, and multiple number requests. Awareness of each of these has risen a few percentage points since November 2003. However, awareness of the other services such as searches for specific services such as taxi services, cinema listings, emailing numbers and television listings remain broadly similar but at lower levels.

5.16 Overall, a fifth (22%) of UK adults were generally aware of the range of additional services on DQ numbers (e.g. onward connection, classified searches etc) and had called one of the new 118 numbers to obtain a number - a slight rise from 16% in October 2003. The overall rise in use of additional DQ services has largely been driven by increased use of text-back, illustrated in figure 5c. Text-back is not a new service, but is more widely available and in some cases provided automatically. The rise in use therefore, may not necessarily be driven by consumers actively choosing to use this service.

5.17 The second most popular new service that consumers have used was onward connection to the requested number - used by one in ten DQ users, rising to 20% amongst frequent users, and equating six per cent of all UK adults as illustrated in figure 5c. Use of the other services remains low in comparison.

5.18 Likelihood of using any of the additional services remains broadly similar this wave at just under four in ten (36%) adults. Text-back, onward connection, and classified searches elicited most interest in the last wave of research and continue to be the additional features consumers claim they are most likely to use.

Figure 5c: Current and potential use of new additional DQ services

* multiple number requests were not included in the October survey.

Base: UK adults, 1075 UK adults, April 2004

General opinion on liberalisation

5.19 Opinions about the DQ market liberalisation continue to vary, with one in five confident that the additional services will be of use to them. There is a diversity of opinion about costs and quality, although in the April survey there was an increase in the proportion who believed that competition between providers will lead to an improvement in service quality. There was a slight drop in the proportion claiming that they will use only one number.

Figure 5d: General opinions on DQ liberalisation