May 9, 2002 — Fort Lauderdale, FL, USA — Economic pressures are driving European directory enquiry providers to partner with content providers and technology suppliers as a way to develop and deploy a new generation of enhanced services, according to the results of a study commissioned by Information Services Extended (ISx).

ISx today released a report summarizing findings of the 18-month study of the European directory assistance / directory enquiry (DA/DQ) market. The research confirmed that the DA/DQ market is changing rapidly, both in emerging markets with less developed DA/DQ services, and in highly developed, competitive markets. As regulatory changes continue to open markets to competitive services, new players have expanded services.
The report reviews key players, the challenges they face in the changing market, and identifies opportunities for growth in spite of heightened economic pressures.Other highlights of the report include the following.

• Independent DA/DQ providers have attracted callers with expanded content and a ‘high touch’ approach, but now face increasing pressure to improve margins.

• Yellow Pages publishers bring rich content for DA/DQ services, but the high margins in the print directory business can make it difficult to sustain investment in lower-margin, live agent services.

• Incumbent telecom DA/DQ operations report declining call volumes, stimulating a re-evaluation of DQ within the telecom organization.

ISx, Inc. also outlines its perspective on opportunities for DQ services to build awareness and improve usage of new mobile data services.

The study was conducted amid dramatic changes in the DQ platform supplier landscape, with IBM spinning off its directory assistance operations into a standalone business, ISx, Inc.; Nortel reducing development resources assigned to its DQ platform business, moving to a maintenance mode; and publicly-held varetis AG recently announcing leadership changes and cutbacks after sustaining losses.

“This research is one of several ongoing initiatives within ISx to align our business focus and development efforts with the market conditions and technology trends that concern ISx customers,” said John Kemp, vice-president and general manager of Europe, Middle East, Africa & Asia Pacific markets, for ISx. “The research helped ISx focus its investments and its new offerings, so we are ready to deliver the new capabilities our customers need when they need them.”

Kathy Lynn-Cullotta, principal and owner of Lynn-Cullotta Consulting, Inc., conducted this study for ISx. Lynn-Cullotta Consulting specializes in research and market strategy development for companies that are launching new products or services, or are restructuring sales channels to meet changing market demands.

The study included in-depth interviews with wireless telecom providers, directory enquiry providers (both telecom operations and independents), and representatives of industry supplier organizations, as well as a broad survey of industry news sources.

To obtain a copy of the report, contact an ISx representative or email info@isxinc.com.