The company that provided directory enquiries (DQ) services for Thus said it is "regrettable" that the Scottish telco decided to pull out of the market.

Thus, best known for its Demon Internet brand, announced on Friday that it was exiting the 118 DQ business to "protect its reputation".

Its decision followed a damning report which found that, on average, four in ten of all calls made to DQ services end up with punters being given the wrong information.

Thus declined to name the provider of its 118 service. However, it's emerged that German outfit Telegate, which runs the 118866 service in the UK, was behind Thus' service.

In a statement Telegate said: "It is regrettable that intense media scrutiny regarding the Oftel report and perceived negativity in the market place has led to Thus taking this action.

"118866 Ltd had already introduced rigorous quality control measures which are steadily improving our performance. We are confident that consumers will quickly notice the resulting improvements and the high standard of service offered.

"We are on track in terms of meeting our market targets and look forward to leading the industry in the direction of achieving higher overall customer satisfaction." ®

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Thus pulls out of 118 to 'protect reputation'