Probe into 'cheaper' 118 service

A parliamentary watchdog is to investigate the telephone directory enquiries market following claims that since the service was opened up to competition, consumers have not benefited from cheaper calls.

The 192 service run by BT was abolished nearly a year ago and replaced by a number of telecommunications companies offering directory enquiries through numbers beginning 118.

But despite increased competition created by the move, the National Audit Office is questioning whether consumers are benefiting from extra choice.

It says it has launched a study, due to report later this year.

The study will examine whether the former telecoms regulator Oftel "effectively managed the liberalisation of the directory enquiries market" and whether the expected benefits of liberalisation occurred in practice for consumers.