New free directory enquiries service to save consumers money

Consumers will be able to save up to £272 million a year following the launch of the new 0800 100 100 free directory enquiries service, according to independent price comparison and switching service, uSwitch.com. The new service could signal the end of paid-for 118 services, labelled by some as ‘expensive flop’.

The new service will be funded through advertising and customers will have to listen to a 20 second advert before they get the number they called to obtain. For many, however, this will be a small price to pay for free information. According to reports, 378 million directory enquiry calls are made in the UK every year, so a new service will enable consumers to save an estimated £272 million a year.

There are dramatic differences in costs between ‘paid-for’ directory enquiry services – charges can vary by as much as 41%. An average one minute call costs consumers 72p per minute from a landline, but services such as Yellow Pages’ 118 247 charge as much as 93p, and costs rise further if calling from a mobile.

Steve Weller, Head of Communications Services at uSwitch.com comments: “The introduction of free directory enquiries is a welcome move and will entice customers back into this market. We expect the new service to be very well received - most callers will be more than willing to listen to some adverts at the start of the call if it saves them money.

“118 services are going to find it harder to compete if they continue to enforce their existing charges and we may see some providers merging or pulling out of the market altogether. There are over 100 different 118 providers in the UK but just two of these are free. Other directory enquiries services will need to think laterally about the way they are funded if they are to avoid the risk of becoming extinct.”