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J.D. Power and Associates Reports:
The Gap in Call Quality Performance among Carriers Narrows
As Competition Intensifies across the Wireless Service Industry
Verizon Wireless, Sprint Nextel and U.S. Cellular Each Rank Highest
In Wireless Call Quality Performance
WESTLAKE VILLAGE, Calif.: 18 March 2009 – As the wireless services industry becomes more competitive, the gap in call quality performance between the highest- and lowest-ranked carriers is smaller compared with previous years, according to the J.D. Power and Associates 2009 Wireless Call Quality Performance StudySM—Volume 1 released today.
The semi-annual study measures wireless call quality based on seven problem areas that impact overall carrier performance: dropped calls; static/interference; failed connection on the first try; voice distortion; echoes; no immediate voicemail notification; and no immediate text message notification. Call quality issues are measured as problems per 100 (PP100) calls, where a lower score reflects fewer problems and higher quality.
The study finds that the differentiation in call quality performance among wireless carriers at the industry level is particularly small in 2009. While call quality performance among carriers still varies at the regional level, the gap between the highest- and lowest-ranked carriers for the overall industry has decreased from 8 PP100 in the 2008 Vol. 2 study to only 5 PP100 in the 2009 Vol. 1 study.
“As carriers continue to invest heavily in infrastructure upgrades and improvements, the differences in their network performance has truly resonated with customers,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “The expansions in coverage will become increasingly important as carriers continue to roll out next-generation technologies.”
For a ninth consecutive reporting period, Verizon Wireless ranks highest in both the Northeast and Mid-Atlantic regions and achieves fewer customer-reported problems in dropped calls, initial connections and late text notifications, compared with the regional averages. Verizon Wireless also leads in the Southwest region and ties with Sprint Nextel to rank highest in the West region. Sprint Nextel customers, in particular, report fewer problems regarding echoes compared with the region average.
In the North Central region, U.S. Cellular ranks highest for a seventh consecutive reporting period. U.S. Cellular has fewer customer-reported problems in dropped calls; initial connections; static/interference; voice distortion; and late text message notifications, compared with the region average.
Consumer confidence in wireless phones has increased in 2009, as 27 percent of customers report having replaced their traditional landline phones with wireless phones. This marks an increase from 25 percent in the 2008 Vol. 1 study.
“In an increasingly competitive environment in which customers are growing more and more dependent on their wireless phones, carriers that can provide superior network quality will have a distinct advantage in attracting new customers and in keeping existing customers satisfied,” said Parsons. “In fact, improving network quality and expanding coverage translates into potential revenue benefits for wireless carriers, as customers who report recently switching from their previous carrier as a result of poor call quality are likely to spend up to $5 more per month for their new service, compared with the industry average. Essentially, wireless customers are willing to pay a premium for an exceptional network.”
The study also finds that wireless customers receive 98 text message notifications per month, compared with just 47 notifications in the 2008 Vol. 1 study. Wireless carriers have handled this boom in text messaging particularly well by increasing the capacity of their networks, and the number of problems associated with late or failed text messages has remained stable over time.
The 2009 Wireless Call Quality Performance Study—Volume 1 is based on responses from 27,754 wireless customers. The study was fielded between July and December 2008. For more information on customer satisfaction with wireless service, wireless retail sales, cell phone handsets, customer care, prepaid wireless service and business wireless service, or to read an article on wireless call quality, please visit JDPower.com.
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, Web intelligence and customer satisfaction. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on boat ratings, 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 (NYSE: MHP) 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 2008 were $6.4 billion. Additional information is available at http://www.mcgraw-hill.com/.
Media Relations Contacts:
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Syvetril Perryman
J.D. Power and Associates
Specialist, Media Relations
2625 Townsgate Road, Suite 100
Westlake Village
, CA
91361
USA
(805) 418-8103
syvetril.perryman@jdpa.com
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Karla Tucker
J.D. Power and Associates
Associate, Media Relations
5435 Corporate Drive, Suite 300
Troy
, MI
48098
USA
(248) 312-4344
karla.tucker@jdpa.com
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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. www.jdpower.com/corporate # # #
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What does J.D. Power and Associates do?J.D. Power and Associates' research, consulting, and performance improvement services are used by a variety of industries to improve product quality and customer satisfaction. The firm's research is based solely on responses from millions of consumers and business customers worldwide. Product and service rankings that result from this research reflect the opinions of consumers and business customers-not the opinion of J.D. Power and Associates. Rankings are derived from nationally syndicated studies that serve as industry benchmarks for measuring and tracking quality and customer satisfaction. J.D. Power and Associates conducts the research, publicly announces the results, and then offers analysis based on consumer feedback to product and service providers to help them improve their businesses.
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