Post Office plots telecoms expansion

The Post Office is likely to expand further into the telecoms sector, following the launch of its directory enquiries service 11 88 55 last week.

Speaking to Marketing Week, Post Office head of marketing Simon Carter says the new 118 service marks the second stage of its move into the telecoms sector after the launch of its Homephone service last year. He adds that further product launches, which could include mobile phone, broadband or Voice over Internet Protocol (VoIP) services, could follow.

Carter says: “We want to build our credibility in the fixed-line market first, which will give us a strong position from which to consider other telecoms launches. The big area of interest at the moment is broadband – in a year or two it might be VoIP. But we can only go into these things if we are a credible player.”

The directory enquiries service will start to feature in the Post Office’s ads for Homephone in the coming weeks. The Post Office will be going up against the likes of BT and The Number 118 118, but is attempting to undercut its rivals by charging a flat rate of 40p for each call, regardless of time length.

Carter adds: “We’re confident people will see the Post Office’s service, 11 88 55, as the new and improved version of the old 192 service.”

Separately, Post Office sales and marketing director Gordon Steele has left the company. It is not known whether he has a job to go to.

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