The Post Office is launching its own directory inquiries service as it continues to expand the range of commercial services beyond its core postal business.

The move will see the Post Office entering a market already suffering from an excess number of players since deregulation three years ago. There are more than 200 businesses offering a directory listing service but the market is dominated by BT and The Number, owned by InfoNXX, the US directory assistance specialist which is hoping to float its UK subsidiary this year. The Post Office claims it will undercut the market leaders by charging a fixed 40p fee for a call with a maximum of two requests.