Telstra admits confusion over directory inquiries

Telstra has conceded marketing of its pricey new directory assistance number - 1234 - may be confusing to non-Telstra customers who believe the service is available to all phone users.

Rivals have accused Telstra of "hijacking" 1234 - a special number shared by all networks for operator connect services - by heavily marketing the number for its premium directory service.

Consumer groups have criticised Telstra for promoting 1234 at the expense of free directory assistance numbers.

Telstra's 1234 replaces its call connect and Yellow Pages connect services, and introduces timed charges of four cents a second, plus a 40 cent connection fee.

Australian Consumers' Association policy officer Charles Britton said it would be more useful to consumers if Telstra promoted the free directory assistance numbers 12455 and 1223 instead.

Telstra is compelled to provide a free directory service to residential phone users, but Mr Britton said most people were unlikely to be able to recall the number off the top of their head. "Telstra can be forced to provide it, but it is harder to get them to promote it," he said.

The Australian Communications Authority has asked Telstra to respond to complaints that its plastering of "1234" across TV, buses, 1600 chalked messages on footpaths and skywriting has led to thousands of consumers mistakenly calling the number even though they use Optus and Vodafone.

In some cases, the number diverts to international operator services on the networks, attracting fees of more than $2.20, which have to be refunded.

A spokeswoman for Telstra's directories unit, Sensis, said some advertising for the 1234 service carried disclaimers that it is only available to Telstra users. "The traditional marketing has clear disclaimers ... As far as the chalking, disclaimers were not on it," she said.

But customer confusion may cause Sensis to drop the ads even without prompting from regulators. "If consumer feedback is such that they feel change is necessary, we will take that on," said the Sensis spokeswoman.

Sensis said the new number was "a premium service for people who want more information".

Use of the free directory service numbers "are in decline", averaging 150 million calls a year, according to Sensis.

The White Pages website gets 1.8 million clicks a month, while calls to the paid Telstra Call Connect and Yellow Pages Connect reached 55 million last year.

Sydney Morning Herald, 22 July, 2004

Telstra offers a free Directory Assistance ( 1223 ) which it does not promote.