From the Wires
J.D. Power and Associates Reports: Cable Modem Usage Gains Market Share as Internet Customers Continue to Move to High-Speed Service
EarthLink Ranks Highest in Customer Satisfaction among Dial-Up Internet Service Providers; Cablevision, Cox Communications, Road Runner (BHN) and WOW! Top Regional Rankings for High-Speed Internet Providers
Oct. 30, 2008 09:01 AM
WESTLAKE VILLAGE, Calif., Oct. 30 /PRNewswire/ -- Cable modem usage is
increasing at a faster rate than DSL usage among Internet customers as dial-up
use continues to decrease, according to the J.D. Power and Associates 2008
Internet Service Provider (ISP) Residential Customer Satisfaction Study(SM)
released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
Now in its 11th year, the study measures customer satisfaction with
high-speed and dial-up Internet service providers based on five factors:
performance and reliability; cost of service; customer service; billing; and
offerings and promotions.
The study finds that the percentage of Internet customers who subscribe to
cable modem service has increased to 41 percent in 2008 from 36 percent in
2007. DSL penetration among Internet customers has also increased to
30 percent in 2008 from 27 percent in 2007. The share of Internet users that
still subscribe to dial-up service has continued to decrease and now accounts
for only 25 percent of Internet subscribers, a decline of 10 percentage points
since 2007.
"Customers now view Internet service as a necessity -- not a luxury -- and
they're looking for faster products capable of handling higher bandwidth,"
said Frank Perazzini, director of telecommunications at J.D. Power and
Associates. "As more movies, television shows and videos are being offered
online, Internet users are looking for faster, higher quality connections to
view content. With both cable modem and DSL service providing faster Internet
capabilities than dial-up, users are interested in finding the best service,
at the best speed, between the two connection types."
The study finds that the number of Internet service customers who consider
themselves loyal to their provider has decreased significantly among
high-speed customers to 30 percent, from 42 percent in 2007 and to 36 percent
from 51 percent in 2007 among dial-up customers. Cost savings is cited by
69 percent of high-speed Internet service customers and 40 percent of dial-up
Internet customers as the main reason they would consider switching providers.
"Even when customers aren't necessarily dissatisfied with their current
provider, they're willing to switch to another provider if they find a better
deal," said Perazzini. "With the current economic uncertainty, and the
introduction of several competitively priced high-speed service offerings,
building customer loyalty should be at the forefront of every Internet
provider's 2009 initiatives."
Dial-Up Internet Service Segment Rankings
EarthLink Net (which includes EarthLink and PeoplePC subscribers) ranks
highest in the dial-up segment with an index score of 633 on a 1,000-point
scale, performing particularly well in customer service, billing, and
performance and reliability. United Online (630) and MSN (602) follow
EarthLink Net in the rankings.
High-Speed Internet Service Segment Rankings
In the 2008 study, high-speed Internet providers are examined in four
regions:
East Region: Cablevision ranks highest with a score of 650, performing
particularly well in offerings and promotions and performance and reliability.
EarthLink follows in the rankings with 643, and Embarq ranks third with 634.
South Region: With a score of 670, Road Runner (delivered by Bright House
Networks) ranks highest, performing well in cost of service, customer service
and billing. Verizon (663) and Insight (661) follow in the region.
North Central Region: Performing particularly well in all five factors
driving satisfaction, WOW! ranks highest with 702. Cincinnati Bell follows
with 665, and Cox ranks third with 663.
West Region: Cox Communications ranks highest with 641, performing
particularly well in performance and reliability and billing. EarthLink (630)
and Verizon (625) follow in the ranking.
The study also finds the following information:
-- Customers who use online billing experience fewer billing errors and
have higher satisfaction scores compared with the average customer. Overall
satisfaction among dial-up customers who receive online bills is 47 points
higher, on average, than among those who receive only paper bills. Similarly,
the satisfaction scores of high-speed customers who receive online bills are
21 points higher, on average, than those who receive paper bills.
-- Among Internet customers, 65 percent report bundling their Internet
service with one or more telecommunications services, compared with 52 percent
in 2007.
The 2008 ISP Residential Customer Satisfaction Study is based on responses
from 16,933 residential customers of Internet service providers nationwide.
The study was fielded in July 2008.
Customer Satisfaction Index Ranking
Dial-Up Segment
(Based on a 1,000-point scale)
Provider Index J.D. Power.com Power
Score Circle Ratings For
Consumers
EarthLink Net 633 5
United Online 630 5
MSN 602 3
Dial-Up Segment Average 587 3
AT&T Yahoo! 584 3
AOL Net 551 2
High-Speed Providers: East Region
(Based on a 1,000-point scale)
Provider Index J.D. Power.com Power
Score Circle Ratings For
Consumers
Cablevision 650 5
EarthLink 643 5
Embarq 634 4
AT&T Yahoo! 629 4
Cox 627 4
Verizon 623 4
Road Runner (Time Warner Cable) 621 4
Frontier 612 3
East Region Segment Average 611 3
RCN 593 2
Comcast 576 2
Charter 572 2
East Region includes: Connecticut, Delaware, District of Columbia, Maine,
Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania,
Rhode Island, Vermont, Virginia and West Virginia.
High-Speed Providers: South Region
(Based on a 1,000-point scale)
Provider Index J.D. Power.com Power
Score Circle Ratings For
Consumers
Road Runner (Bright House Networks) 670 5
Verizon 663 5
Insight 661 5
EarthLink 651 4
Cox 645 4
Embarq 639 3
AT&T Yahoo! 631 3
South Region Segment Average 628 3
Road Runner (Time Warner Cable) 626 3
Cable One 625 3
Comcast 592 2
Windstream 590 2
CenturyTel 586 2
Charter 566 2
Mediacom 549 2
South Region includes: Alabama, Arkansas, Florida, Georgia, Kansas,
Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South
Carolina, Tennessee and Texas.
High-Speed Providers: North Central Region
(Based on a 1,000-point scale)
Provider Index J.D. Power.com Power
Score Circle Ratings For
Consumers
WOW! 702 5
Cincinnati Bell 665 4
Cox 663 4
Insight 653 4
EarthLink 644 4
Verizon 633 4
AT&T Yahoo! 626 4
Road Runner (Time Warner Cable) 610 3
CenturyTel 608 3
North Central Region Segment Average 608 3
Embarq 607 3
Charter 564 2
Comcast 559 2
North Central Region includes: Illinois, Indiana, Michigan, Ohio and
Wisconsin.
High-Speed Providers: West Region
(Based on a 1,000-point scale)
Provider Index J.D. Power.com Power
Score Circle Ratings For
Consumers
Cox 641 5
EarthLink 630 4
Verizon 625 4
AT&T Yahoo! 618 3
West Region Segment Average 616 3
Qwest 611 3
Cable One 607 3
Embarq 607 3
Comcast 595 2
Frontier 588 2
Road Runner (Time Warner Cable) 583 2
Charter 563 2
Mediacom 558 2
West Region includes: Arizona, California, Colorado, Idaho, Iowa,
Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South
Dakota, Utah, Washington and Wyoming.
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 (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 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 Aimee Canlas
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8917
john.tews@jdpa.com aimee.canlas@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
SOURCE J.D. Power and Associates
About PR NewswireCopyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
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