• Business Week, Wednesday, April 11, 2007 10:45 AM

Does Google 411 signal the end of big telecoms' directory phone assistance? It certainly changes things. The days of calling 411 and paying a dollar or more for help appear to be numbered, as Google 411 and a bevy of startups offer free, ad-supported directory service. Those high-cost days have been on the wane since mobile search began connecting users to free yellow pages listings and Web sites. But with Google 411 and other services, consumer can now find people for free, on landlines as well as their cell phones.

This is definitely a good thing for the millions of 411 customers who pay an average cost of $1.28 from a land line and $1.57 from cell phones collectively pay millions to telecom providers. For big phone companies, Google 411 is yet another reason to dislike the search giant, whose service threatens an $8 billion annual windfall. Google rivals Microsoft and Yahoo already provide automated directory assistance; just last month, Microsoft acquired Tellme, which provides service to telecom giants like Cingular/AT&T.

The report points out that there are a variety of ways directory assistance providers can generate ad revenue, from inserting marketing messages to free calls, or selling location information to business owners, in addition to providing their phone numbers.

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