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J.D. Power and Associates Reports: Cox Communications and Qwest Rank Highest in Satisfying Business Customers With Telecommunications Data Services

Posted on: Thursday, 19 June 2008, 09:00 CDT

WESTLAKE VILLAGE, Calif., June 19 /PRNewswire/ -- Cox Communications and Qwest rank highest in satisfying small/midsize and large enterprise business customers with telecommunications data services, respectively, according to the J.D. Power and Associates 2008 Major Provider Business Telecommunications Study(SM) released today.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)

The study measures customer satisfaction with providers of telecommunications data services, such as cable modem, DSL, T1, T3/DS3, ethernet and frame relay. Providers are ranked in two segments: small/midsize businesses (companies with 2 to 499 employees) and large enterprise businesses (companies with 500 or more employees). Six key factors are used to measure satisfaction (in order of importance): performance and reliability; sales representatives/account executives; billing; cost of service; offerings and promotions; and customer service.

Cox Communications leads the small/midsize business segment, performing particularly well in five of six factors: performance and reliability; sales representatives/account executives; billing; cost of service; and customer service. Verizon follows Cox Communications in the segment rankings.

In the large enterprise business segment, Qwest ranks highest in customer satisfaction, receiving highest ratings from customers in five of six factors: performance and reliability; sales representatives/account executive; billing; cost of service; and offerings and promotions. Verizon follows Qwest in the segment rankings.

The study finds that more small and midsize businesses are spending less on telecommunications data services than they were in 2007. Approximately 81 percent of small and midsize businesses are spending less than $1,000 per month for data services, compared with 76 percent a year ago. In addition, the number of small/midsize businesses that intend to bundle telecommunication services has increased to 50 percent -- up from 48 percent in the 2007 study.

"Some providers have lowered prices in order to maintain their market share, which is good news, especially for small and midsize businesses that are particularly vulnerable to the financial pressures associated with the current economy," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "Data services are increasingly vital to business operations regardless of size, and the ability to receive more services for less money helps these businesses cut costs without reducing headcount."

The study also finds that the rate of switching providers among small/midsize businesses and large enterprises has declined slightly since 2007. In 2008, 14 percent of large enterprises switched providers, compared with 17 percent in 2007. Among small and midsize businesses, only 8 percent switched providers in 2008, compared with 10 percent in 2007. Additionally, 38 percent of large enterprise customers report that it would be "somewhat difficult" to switch providers, compared with 22 percent in 2007.

"Switching data service providers is not always cost effective for large businesses that have many employees and locations to consider," said Perazzini. "Unless a business is assured a highly favorable price and superior service, the additional costs and coordination, combined with the current economic struggles, make it more likely that many businesses will wait to change providers until they have a handle on the economic outlook for their company and the major providers in the industry."

The 2008 Major Provider Business Telecommunications Services Study is based on responses from 2,422 business customers with telecommunications data services at small/midsize and large enterprise businesses in the United States and includes evaluation of their data service providers. The study was fielded in March and April 2008.

Customer Satisfaction Index Ranking Small/Midsize Business Segment (Based on a 1,000-point scale) Provider Index Score J.D. Power.com Power Circle Ratings For Consumers Cox Communications 651 5 Verizon 640 4 Time Warner Cable 605 3 Small/Midsize Business 600 3 Major Provider Average Comcast 594 3 AT&T 581 2 Qwest 560 2 Large Enterprise Segment (Based on a 1,000-point scale) Provider Index Score J.D. Power.com Power Circle Ratings For Consumers Qwest 692 5 Verizon 679 4 AT&T 665 3 Large Enterprise Major 665 3 Provider Average Comcast 615 2

Included in the study but not ranked due to small sample size are Cox Communications and Time Warner Cable.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on telecommunications services, car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were $6.8 billion. Additional information is available at http://www.mcgraw-hill.com/.

J.D. Power and Associates Media Relations Contacts: John Tews Syvetril Perryman Troy, Mich. Westlake Village, Calif. (248) 312-4119 (805) 418-8103 john.tews@jdpa.com syvetril.perryman@jdpa.com

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. http://www.jdpower.com/corporate

Photo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-aAP Archive: http://photoarchive.ap.org/PRN Photo Desk, photodesk@prnewswire.com

J.D. Power and Associates

CONTACT: John Tews, Troy, Mich., +1-248-312-4119, john.tews@jdpa.com,or Syvetril Perryman, Westlake Village, Calif., +1-805-418-8103,syvetril.perryman@jdpa.com, both of J.D. Power and Associates

Web site: http://www.jdpower.com/http://www.mcgraw-hill.com/

Source: PRNewswire

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