• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

J.D. Power and Associates Reports: Cable Companies Dominate Customer Satisfaction Rankings for Local and Long Distance Telephone Service

Posted on: Wednesday, 12 July 2006, 09:00 CDT

WESTLAKE VILLAGE, Calif., July 12 /PRNewswire/ -- As cable companies aggressively entice telephone customers with attractively priced service bundles, many are also outperforming traditional telephone companies in satisfying customers, according to the J.D. Power and Associates 2006 Residential All-Distance Telephone Customer Satisfaction Study(SM) released today.

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

The study, which measures customer satisfaction with both local and long distance telephone service, finds that cable companies rank highest in customer satisfaction in five of six U.S. regions. In 2005, just one cable company -- Cox -- led any of the regional customer satisfaction rankings. Cox Communications now ranks highest in three regions, while newcomers Bright House Networks and Time Warner Cable each rank highest in one region. Verizon is the sole traditional telephone company ranking highest in a region.

"While telephone service offered by cable companies is relatively new to the market, large numbers of customers are being lured to switch with enticing cost savings and highly attractive bundles of video, voice and data service," said Steve Kirkeby, executive director of telecommunications and technology research at J.D. Power and Associates. "The importance of pricing as a reason to bundle service with a single provider has increased dramatically this year, no doubt a result of significant price competition introduced when cable companies began offering local and long distance telephone service to new markets."

Although price competition plays a significant role in the industry today, customer-reported spending on local and long distance service has increased 3.4 percent from 2005. On average, customers report paying $52.40 per month for local and long distance service -- up from $50.70 in 2005. Customers of cable providers report paying an average of just $42.40 per month, while reported spending with traditional telephone companies averages $53.59.

"We're seeing that for the first time customers are most often contacting their all-distance carrier about rates, pricing and features while questions about billing have dropped dramatically, spotlighting how intense competition and simplified rates are changing customer focus," said Kirkeby. "However, the study findings consistently indicate that price alone will not satisfy or retain customers."

The study finds customer satisfaction in the telephone industry continues to decline. Overall, satisfaction index scores have dropped from 692 (on a 1,000-point scale) in 2005 to 670 in 2006. Satisfaction has fallen in all six factor areas measured in the study, dropping most significantly in the areas of customer service, image and billing. The other areas measured are performance and reliability, cost of service, and offerings and promotions.

"Although cable companies entering new markets average satisfaction scores that are more than 30 index points higher than the industry as a whole, and despite nearly doubling their share to just under 10 percent of the telephone service market, cable companies are not yet a large enough force to propel overall satisfaction higher," said Kirkeby. "Overall satisfaction drops as the industry continues to struggle with consumer uncertainty caused by several large, well-publicized mergers and divestitures among the traditional phone companies. Changes such as these always take their toll on customer satisfaction."

The study results by region are: Northeast Region: Cox Communications ranks highest, receiving the highest ratings in the region in performance and reliability, billing, image, customer service, and offering and promotions. Mid-Atlantic Region: Verizon ranks highest, outperforming other carriers in billing, image, cost of service, and offerings and promotions. Southeast Region: Bright House Networks ranks highest, with top ratings in the region in customer service, billing and image. North Central Region: Time Warner Cable ranks highest, with the highest ratings in the billing and cost of service factors. Southwest Region: Cox Communications ranks highest, with particularly high ratings in customer service, billing and image. West Region: Cox Communications ranks highest in the region for a fourth consecutive year, receiving top ratings in all six factors.

The 2006 Residential All-Distance Telephone Customer Satisfaction Study is based on responses from 12,196 customers nationwide who receive their local and long distance telephone service from one provider.

Customer Satisfaction Index Scores (Based on a 1,000-point scale) Northeast Region (Includes Connecticut, Massachusetts, Maine, New Hampshire, New York, Rhode Island and Vermont) Cox Communications 748 Time Warner Cable 713 Cablevision 675 Verizon 667 Northeast Region Average 667 Frontier 658 AT&T 656 Comcast 616 Mid-Atlantic Region (Includes Washington, D.C., Delaware, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia) Verizon 679 Mid-Atlantic Region Average 671 AT&T 666 Cox Communications 662 Comcast 632 Sprint 597 Southeast Region (Includes Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee) Bright House Networks 723 Time Warner Cable 711 BellSouth 702 Southeast Region Average 684 Cincinnati Bell 680 Verizon 669 AT&T 656 ALLTEL 653 Sprint 645 North Central Region (Includes Illinois, Indiana, Michigan, Ohio and Wisconsin) Time Warner Cable 713 Cincinnati Bell 709 TDS 708 Talk America 685 Verizon 660 North Central Region Average 654 AT&T 646 Comcast 640 Sprint 636 CenturyTel 611 Southwest Region (Includes Arkansas, Kansas, Missouri, Oklahoma and Texas) Cox Communications 707 Time Warner Cable 698 AT&T 683 Southwest Region Average 671 Verizon 637 ALLTEL 634 CenturyTel 619 Sprint 610 West Region (Includes Arizona, California, Colorado, Iowa, Idaho, Minnesota, Montana, North Dakota, Nebraska, New Mexico, Nevada, Oregon, South Dakota, Utah, Washington and Wyoming) Cox Communications 730 Verizon 691 West Region Average 675 Qwest 673 AT&T 665 Comcast 663 Frontier 623 Sprint 618 About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. 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 290 offices in 38 countries. Sales in 2005 were $6.0 billion. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts: Karla Tucker Syvetril Perryman J.D. Power and Associates J.D. Power and Associates Troy, Mich. Westlake Village, Calif. (248) 312-4344 (805) 418-8103 Karla.tucker@jdpa.com syvetril.perryman@jdpa.com Gibson Patterson JMPR Public Relations Woodland Hills, Calif. (818) 992-4353/cell: (310) 722-6060 gpatterson@jmprpublicrelations.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-aPRN Photo Desk, photodesk@prnewswire.com

J.D. Power and Associates

CONTACT: Karla Tucker, Troy, Mich., +1-248-312-4344,Karla.tucker@jdpa.com, or Syvetril Perryman, Westlake Village, Calif.,+1-805-418-8103, syvetril.perryman@jdpa.com, both of J.D. Power andAssociates; or Gibson Patterson, Woodland Hills, Calif. of JMPR PublicRelations, +1-818-992-4353, or mobile, +1-310-722-6060,gpatterson@jmprpublicrelations.com, for J.D. Power and Associates

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

Web site: http://www.jdpower.com/corporate

Source: PRNewswire

More News in this Category