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J.D. Power and Associates Reports: AT&T U-Verse and Verizon FiOS Lead Regional Customer Satisfaction Rankings Among Cable, Satellite and Internet Television Service Providers

October 1, 2008

WESTLAKE VILLAGE, Calif., Oct. 1 /PRNewswire/ — AT&T U-verse ranks highest in customer satisfaction in three regions and Verizon FiOS ranks highest in one region among television service providers, according to the J.D. Power and Associates 2008 Residential Television Service Satisfaction Study(SM) released today.

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The study measures customer satisfaction with cable, satellite and Internet protocol (IPTV) television providers in four regional segments: North Central, East, West and South. Within each segment, five factors are measured to determine overall customer satisfaction: performance and reliability; customer service; cost of service; billing; and offerings and promotions. Customer satisfaction with video provider performance is reported as an index score based on a 1,000-point scale.

AT&T U-verse ranks highest in the North Central (with an index score of 730), West (697) and South (706) regions. In the East region, Verizon FiOS ranks highest with a score of 677. This is the first year both AT&T U-verse and Verizon FiOS are included in the study. AT&T U-verse and Verizon FiOS perform particularly well in the offerings and promotions factor, specifically with their bundled pricing options. Both providers also perform well in the performance and reliability factor, especially regarding reception clarity.

“With the addition of AT&T and Verizon to the residential television service market, competition has intensified among providers that bundle voice, television and data services on a single bill,” said Frank Perazzini, director of telecommunications at J.D. Power and Associates. “Ultimately, the consumer is going to be the big winner in this battle as cable, satellite and IPTV providers strive to offer the highest quality television experiences at competitive price points.”

The study finds that the number of households that report viewing high definition television (HDTV) programming has nearly doubled since 2007, reaching 55 percent of households in 2008.

“The sharp increase in HD programming across virtually all providers has helped drive HDTV set sales,” said Perazzini. “The rise in the adoption of HDTV has also been a boon for the video-on-demand (VOD) market. Households that receive HD programming view nearly twice as many hours, on average, of VOD or pay-per-view programming per month as non-HD households.”

The study also finds the following trends:

— One-half of cable customers currently bundle their video and Internet service together, while 19 percent of customers subscribe to “triple-play” services (television, voice and Internet).

— Penetration of digital video recorders (DVRs) continues to increase, with 44 percent of customers stating they use a DVR, compared with 38 percent in 2007.

— Among customers who receive electronic bills, the overall satisfaction score averages 629, while among customers who receive only a paper bill, overall satisfaction averages 600.

The 2008 Residential Television Service Satisfaction Study is based on responses from 18,938 U.S. households that evaluated their cable, satellite or IPTV provider. The study was fielded in July 2008.

   Customer Satisfaction Index Ranking   North Central Region   (Based on a 1,000-point scale)                                                     J.D. Power.com Power                                                       Circle Ratings   Provider                         Index Score         For Consumers    AT&T U-verse                         730                    5   WOW!                                 702                    4   DIRECTV                              660                    4   Insight                              655                    4   Cox                                  639                    4   DISH Network                         627                    4   Bright House                         611                    3   North Central Region Major Provider    Average                             598                    3   Time Warner Cable                    581                    3   Comcast                              554                    2   Mediacom                             547                    2   Charter                              538                    2    

Included in the North Central Region are: Illinois, Indiana, Michigan, Ohio and Wisconsin.

   East Region   (Based on a 1,000-point scale)                                                     J.D. Power.com Power                                                       Circle Ratings   Provider                         Index Score          For Consumers    Verizon FiOS                         677                    5   DIRECTV                              652                    4   DISH Network                         636                    4   Cablevision                          620                    4   Cox                                  617                    4   East Region Major Provider Average   603                    3   RCN                                  599                    3   Time Warner Cable                    595                    3   Charter                              566                    2   Comcast                              566                    2    

Included in the East Region are: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia and West Virginia.

   West Region   (Based on a 1,000-point scale)                                                       J.D. Power.com Power                                                        Circle Ratings   Provider                         Index Score          For Consumers    AT&T U-verse                         697                    5   Verizon FiOS                         673                    4   DIRECTV                              654                    4   Cox                                  644                    4   DISH Network                         642                    4   Cable One                            619                    3   West Region Major Provider Average   614                    3   Time Warner Cable                    582                    2   Comcast                              580                    2   Charter                              564                    2   Mediacom                             535                    2    

Included in the West Region are: Arizona, California, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.

   South Region   (Based on a 1,000-point scale)                                                      J.D. Power.com Power                                                        Circle Ratings   Provider                         Index Score          For Consumers    AT&T U-verse                         706                    5   Verizon FiOS                         688                    4   DIRECTV                              662                    4   DISH Network                         650                    4   Insight                              647                    4   Bright House                         643                    4   Cox                                  638                    4   South Region Major Provider Average  617                    3   Cable One                            601                    3   Suddenlink                           599                    3   Comcast                              580                    2   Time Warner Cable                    580                    2   Charter                              548                    2   Mediacom                             537                    2    

Included in the South Region are: Alabama, Arkansas, Florida, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee and Texas.

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 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

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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/




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