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The Guardian - UK
The Guardian - UK
Business
Anna Tims

Ofcom to review charges for calls to directory inquiries services

Shocked man looking at mobile phone
One Observer reader was charged £501 for calls to a 118 number. Photograph: Alamy Stock Photo

The telecoms regulator, Ofcom, has announced a review into the high cost of calls to directory inquiries services two months after I featured the case of a reader who was charged £501 for six calls to a 118 number.

Prices have increased by up to 17-fold since BT’s service was opened up to competition in 2003, but in 2013 Ofcom abandoned its own proposals to impose a cap on 118 call charges after protests from the telecoms industry. Instead, last year it sanctioned a top price bracket of £15.98 for the initial call plus £7.99 for every ensuing minute, and Telecom2 took advantage of it. The firm withdrew the service that connected callers to their chosen number and cost some of them three-figure sums only after The Observer investigated.

In March, Ofcom told me it had deemed a price cap “not warranted”, but said it was concerned about recent price increases. The Observer article was picked up by BBC One’s Rip Off Britain,and it would seem that media pressure has helped to galvanise the regulator into action.

“We were already discussing a review internally,” says a spokesperson. “Having said that, we do always welcome and appreciate any evidence brought to our attention.”

The call cost review will consider if dubious sales practices or market failure are harming consumers and what can be done about it. A price cap would be the obvious solution, but those who still rely on 118 services will have to wait until later in the year for its proposals and 2018 at the earliest for anything actually to happen.

If you need help email Anna Tims at your.problems@observer.co.uk or write to Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU. Include an address and phone number.

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