Denise Washington used to dial 411 on her cellphone for help finding local addresses and phone numbers while driving around the Denver area.
But those directory-assistance calls ended when she received her monthly bill from AT&T, filled with additional charges and taxes.
“I was surprised. I thought the calls were free. Maybe I didn’t read that part of my contract,” said the executive director of the Colorado Coalition Against Domestic Violence, who recently moved back to Denver after 23 years. “I don’t have phone numbers in my car or an onboard navigation system.”
Asked whether she would use a free directory-assistance service in exchange for listening to a few seconds of advertising, Washington quickly responded:
“You bet. I’ve never heard of free 411, but I would use it rather than pay charges.”
New 411 services are springing up and gaining popularity as alternatives to fee-based services available from cellular providers. Instead of paying a service fee, callers must listen to a brief advertisement before receiving a phone number. The ads callers listen to aren’t necessarily relevant to the listing requested.
And two of the biggest names in technology – Google and Microsoft – are playing a role in the 411 revolt.
While local 411 calls are often free for those calling from their home phones, cellular companies are raking in money from charges made by active cellphone users.
More than 6 billion directory- assistance calls were made in the U.S. in 2006. That includes calls made from home and cellphones, according to a report from the Kelsey Group, a Princeton, N.J.-based market-research firm. Those calls generated an estimated $9.4 billion in revenues, based on cellphone charges averaging $1.50 per call.
That revenue stream for carriers is expected to change as more people learn about and start using free 411 services not only on their mobile phones, but also on land lines.
“There’s a lot of examples out there that consumers are graduating to free services,” said Matt Booth, senior vice president and program director for the Kelsey Group. “These services are going to continue to grow really fast. There are a lot of different ways consumers can get access to numbers.”
So far, one of the most popular services is 800-FREE-411, offered by Menlo Park, Calif.- based Jingle Networks Inc., said Booth. Last week, the company said that it has processed 200 million 411 calls since its launch in September 2005.
Denver residents have made more than 1.1 million 800-FREE-411 calls since 2005. Jingle estimates those calls saved callers $2.3 million in 411 charges.
Google is testing 800-GOOG-411. There are no ads on the service, which, according to the robotic voice that connects your call, is “made possible by” Broomfield-based fiber-optic network operator Level 3 Communications.
Microsoft earlier this year purchased Tellme Networks, a major processor of 411 services for many cell providers, for an undisclosed amount. Tellme just rolled out its own free, ad-based 411 service, 800-555-TELL.
“Consumers are driving the free 411 services because people are price conscious,” said Tellme spokeswoman Megan Dyer. “But you have to be careful with ads on the phone, you don’t want some obstructive ad that takes too long.”
On average, a 411 call costs a carrier about 16 cents, but advanced companies using special speech-recognition technology can lower the cost to about 2 cents, Booth said.
Google’s service is voice activated, and Jingle’s service will connect callers to an operator if they have difficulty finding a number.
In addition to an operator or automated voice reading the number back to the caller, many cellphone 411 services offer the additional option of receiving a text message containing the number.
That feature is available through the Google and Tellme service as well.
Cellphone carriers say that while there are fees associated with 411 calls, users can get more than a phone number from directory-assistance operators.
“I believe we have a robust listing of information,” said Verizon Wireless spokesman Bob Kelley. Directory-assistance calls cost $1.49.
“You can get restaurant listings, movie listings, weather, sports scores and stock quotes, up to three requests per call,” he said.
Tellme and Jingle said that although they’re focused on providing numbers and addresses to callers, they may consider expanding their offerings at a later date.
Tellme already offers stock quotes, sports scores and news headlines.
“We think that when people call in, they’re on the road and want specific information right then and there,” said Jingle senior vice president of marketing Lyn Chitow-Oakes. “Our service was specifically founded for that reason. Consumers are sick of paying for 411.”
Staff writer Kimberly S. Johnson can be reached at 303-954-1088 or kjohnson@denverpost.com.
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No-charge calls
While most cellphone providers charge for directory-assistance calls, alternatives are available.
Some free 411 services, which include short audio ads and can be dialed from any phone:
800-FREE-411 (800-373-3411) – in addition to ads, may ask callers to take a survey or enter a drawing.
800-GOOG-411 (800-466-4411) – business listings only, no ads currently.
800-555-TELL (800-555-8355) – also offers sports, news and stock quotes.
800-411-SAVE (800-411-7283)
*Cellphone minutes or airtime rates still apply in accordance with your provider.
Sources: AT&T, Google, Tellme, Jingle.
