Free 411? AT&T Launches Ad-Supported Directory Assistance

AT&T has launched a free directory assistance service on a trial basis in three markets: Bakersfield, California, Oklahoma City and Columbus, Ohio. The catch: users will have to listen to an ad before they receive their free information. The ads will feature competitors whenever possible so that in the crucial moments before a purchasing decision, competitors will be able to snatch away business. The free service, which AT&T-owned Cingular Wireless charges $1.50 for, will be available at 1-800-YellowPages. David Goddard, a telephone directory analyst at Simba Information, expects the service to be most popular among cell phone users who don't have a Yellow Pages handy and who were reluctant to call information in the past due to its heavy costs.
• Sources: Press Release, Reuters, San Antonio Business Journal
• Related commentary: AT&T: Unfulfilled Innovations Since 1993, Will AT&T Let Its Bid To Acquire BellSouth Die?. Conference call transcripts: AT&T Q3 2006
• Potentially impacted stocks and ETFs: AT&T (T). Competitors: BellSouth (BLS), Verizon (VZ), Sprint Nextel (S), Qwest Communications (Q). ETFs: iShares S&P Global Telecommunications (IXP), iShares Dow Jones US Telecom (IYZ), Telecom HOLDRs (TTH) and Vanguard Telecom Services (VOX)

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Comments

[Anand Gupta]

1-800-FREE411 is another which is supported by 12 second ads.

[James Rite]

My whole family has been using Free411 (1-800-373-3411)</s... for a while now and it's saving us about $20 a month on our cell bill. Verizon would charge 1.75 for each 411 call, some even charge $3 per 411 call! With Free411 it is totally free (just airtime) in less than 30 seconds you have the number you need and your done. Great service!

Oh, and unlike the at&amp;t service, Free411 is working all across the country NOW. I'd bet that at&amp;t is going to put some long ads too.