Ref: 63/01
Date: 19 September 2001

Oftel announced today the introduction of competition in the provision of directory enquiry services in the UK.

Competition will promote greater innovation, higher quality services and lower prices for customers, Director General of Telecommunications David Edmonds said today.

From next year, BT’s historic near monopoly in voice based directory enquiry services will come to an end as directory enquiry companies will be able to offer their own services to consumers.

New services will include:

• ‘call completion’ facilities connecting people directly to the number requested;

• a single number for classified and standard services to enable consumers to find the numbers of all relevant businesses as well as a single firm; and

• services in a range of languages for tourists and minority ethnic communities.

New firms in the market will also mean more competition in quality of service and on price.

The proposals follow extensive consultation by Oftel with consumer groups and industry and a thorough cost benefit analysis. Oftel found that British consumers were not benefiting from the same wide range of services and increased price competition as consumers in other European countries.

To make the change happen, Oftel will issue new five digit numbers beginning 118. After a transitional period of a year, these numbers will replace the current 192 directory enquiry code.

Announcing the decision, David Edmonds said:

"Consumers in many European countries have access to up to ten different directory enquiry services, offering a wide range of services with competition on price and quality of service. The UK’s antiquated arrangements deny consumers that choice.

"Our research shows that consumers are increasingly unhappy with the cost of these services. Most of them are not concerned about the end of the 192 directory enquiries number. Modernisation through greater competition is therefore essential.

"Oftel will work with the industry to ensure the smoothest transition to the new arrangements.

"This is not another national number change. It is the right way to get new innovative services to the greatest number of people as quickly as possible. I expect to see new services starting in the course of the next year.

"Directory enquiry companies wanting to enter the UK market have suggested that providing new services will lead to the creation of many new jobs.

"Oftel will maintain the 195 code for blind people and others who cannot use printed directories. These changes will not affect this vital service in any way."

Notes for Editors:

1. Oftel's statement 'Access codes for directory enquiry services' issued by the Director General of Telecommunications is published on Oftel's website at www.oftel.gov.uk/publications/numbering/denq0901.htm. Copies are available to the media from Oftel's Press Office on 020 7634 8991 and to the general public from the Research and Intelligence Unit on 020 7634 8761.

2. Consumers currently access national directory enquiry (DQ) services by dialling 192 regardless of which telephone company they use. When callers dial 192 they are automatically transferred to the service offered by their telephone company - they cannot choose another company’s service using a similar short code.

3. The 153 code is used for international DQ services, 142 is also used by some operators for national DQ – they will both be withdrawn from use for DQ services in the same timeframe as 192.

4. Oftel commissioned a cost benefit analysis from the telecoms consultants Ovum. It identified three options for increasing the number of providers available to consumers, all of which involve new 5- or 6-digit numbers starting with 118, the basis for directory enquiry codes in a number of European countries.

5. Potential DQ service providers have been able, for a number of years, to offer their services over longer numbers - such as those used for Premium Rate Services. However, there has been little entry to the market because of the competitive disadvantage in having to use a longer number. UK consumers have, therefore, not been able to make use of the potential benefits that a competitive environment would bring.

6. Oftel will work with industry in the autumn to plan the introduction of the new codes. Oftel expects to start allocating numbers towards the end of the year and it is anticipated that new services will be available in 2002.