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At present, consumers can only access the DQ service provided by their operator through the existing 192 code. Deregulation will enable consumers to dial up whichever DQ provider they choose regardless of their network. Competition promises to drive down the cost of calls - BT charges 40p - and introduce more innovative services.

For a nation that pioneered telecoms deregulation, the UK has lagged behind other European countries in opening up the market in DQ services.

Germany and Ireland did it several years ago: the 118 prefix is already operational within those countries.

DQ specialists Conduit, of Ireland, and Telegate, of Germany, enjoy significant market share in their home countries. They already operate in the UK as outsourced providers of DQ services to the existing cable and mobile network operators. Conduit, for example, handles DQ calls made by customers of Telewest and Orange.

Conduit and Telegate are now hell-bent on cracking the UK in their own right, having each earmarked around £15m on launch marketing. Both have the necessary call centre and database infrastructure as well as the experience of operating in a competitive market. Incumbent operators BT and Cable & Wireless as well as directory companies Scoot and Yell are among the other serious contenders about to battle it out for the DQ buck.

DQ is, at first glance, completely commoditised. "Directory enquiries has never been seen as a jazzy industry but one that's taken for granted,

says Jim Lowther, operator services director at Cable & Wireless. "Many consumers think the service is free, like turning on a tap."

But besides pricing and branding, companies can still differentiate themselves through their service and the product itself. "When we launched in Ireland it was a basic DQ service,

says Liam Young, chief executive of Conduit.

"But we soon enhanced our offering with automatic call connection, texting numbers so customers don't have to write them down, and a business finder service allowing customers to ask for a category, such as local taxi firms.

Other value-added services such as cinema listings or train timetable information, which follow through the logic of the customer's number request, are also under consideration by new players.

When it comes to branding, the numbers themselves look set to become the DQ brands. Memorable ones like 118118 or 118811 were highly coveted in the draw, the results of which Oftel publishes next week. "In Ireland, no-one's heard of Conduit but people know 11850, which is the number we operate there,

says Young. "A number can have all the values and attributes people attach to a brand name."

On the other hand incumbent players like BT and C&W will surely exploit their brand equity in marketing their numbers.

Advertising pitches for the providers are in various stages of progress.

And with mobile telephony poised to overtake fixed line, SMS is likely to play a key role in acquiring customers. Anne de Kerchove, managing director at mobile marketing company 12 Snap, says: "We've had many conversations with DQ providers about running SMS campaigns to promote their service and plug their number so recipients can store it in their address book."

For all the promise of widespread competition, hindsight from abroad suggests the DQ market will rationalise after a few years down to about three players. Somebody's number will be up. But the consumer will hopefully be one of the winners.