J.D. Power and Associates Reports: Incidence of Dropped Calls Increases Considerably Among Customers Who are Most Likely to Switch Wireless Providers

WESTLAKE VILLAGE, Calif., Sept. 9 /PRNewswire/ -- Among wireless customers who are most likely to switch providers, problem rates related to dropped calls have increased notably from six months ago, according to the J.D. Power and Associates U.S. 2010 Wireless Call Quality Performance Study(SM)—Volume 2 released today.

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The semiannual study measures wireless call quality, based on seven problem areas that impact overall carrier performance: dropped calls; static/interference; failed call 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 call quality. Call quality performance is examined in six regions: Northeast; Mid-Atlantic; Southeast; North Central; Southwest; and West.

The study finds that 14 percent of customers say they "definitely will" or "probably will" switch wireless providers in the next 12 months and that these customers experience a particularly high rate of call-related problems. The rate of call quality problems among customers who say they "definitely will" switch their current wireless provider is more than four times higher than problem rates among customers who say they "definitely will not" switch in the next 12 months (29 PP100 vs. 7 PP100, respectively).

Specifically, dropped calls are primarily driving the high switching rate, compared with other call quality issues. For example, problem rates average 20 PP100 among customers who say they "definitely will" switch carriers within the next year and also say they had at least one dropped call. Furthermore, the rate of dropped call problems among customers who say they "definitely will" switch has increased by 33 percent from six months ago. In comparison, among those wireless customers who experience calls that are not connected on the first try, the average problem rate is 11 PP100, up slightly from 10 PP100 six months ago.

"With an increasingly competitive environment and the complexity of services often used in conjunction with cell phones steadily on the rise, carriers that offer superior network quality may improve their likelihood of attracting new customers and increasing customer retention," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "In fact, improving network quality and, in turn, retaining the customers most likely to switch are beneficial financial incentives for wireless carriers, as customers who are more likely to switch tend to spend an average of $82 per month and make or receive 127 calls per month, while those who aren't considering switching spend $78 and make or receive 104 calls per month, on average."

Regional rankings are as follows:

For a 12th consecutive reporting period, Verizon Wireless ranks highest in both the Northeast and Mid-Atlantic regions. Verizon Wireless achieves fewer customer-reported problems with dropped calls, initial connections and interference, compared with the regional averages. Verizon Wireless also ranks highest in the West region and ranks highest in the Southeast region in a tie with both Sprint Nextel and T-Mobile.

In the North Central region, U.S. Cellular ranks highest for a 10th consecutive reporting period. Compared with the regional average, U.S. Cellular has fewer customer-reported problems with dropped calls, failed initial connections, interference and echoes.

In the Southwest region, T-Mobile ranks highest, due mainly to lower reported PP100 ratings in voice-centric dimensions such as interference, echoes and voice distortion, compared with the regional averages.

"Wireless customers rely on their phones to do everything from providing them with driving directions to sending picture messages, as well as placing calls, so carriers must provide their customers with problem-free experiences to keep them satisfied," said Parsons. "Wireless customers have higher expectations than ever before of their phones and the networks on which they operate."  

Additional study findings include:

• Wireless usage patterns continue to evolve, as fewer calls are made or received and customers use their devices more often for text messaging, which increasingly is the preferred method for communication. The study finds that wireless customers receive 144 text message notifications per month—29 percent more text message notifications than reported one year ago.
• PP100 scores continue to be higher among smartphone customers than among traditional handset customers—13PP100 vs. 9PP100. However, both rates are lower than those reported six months ago.
• Among the top 27 U.S. markets, the PP100 score is lowest among wireless customers in the Tampa, Fla., area (5 PP100), and highest among wireless customers in Charlotte, N.C. (19 PP100).

The 2010 Wireless Call Quality Performance Study—Volume 2 is based on responses from 26,595 wireless customers. The study was fielded between January and June 2010.

For more information on customer satisfaction with wireless service, wireless retail sales, cell phone handsets, customer care, prepaid wireless service and business wireless service, please visit JDPower.com.

Call Quality Rankings

Mid-Atlantic Region

Problems per 100 Calls

Included in the Mid-Atlantic Region are: Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia.

North Central Region

Problems per 100 Calls

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

Northeast Region

Problems per 100 Calls

Included in the Northeast Region are: Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont.

Southeast Region

Problems per 100 Calls

Included in the Southeast Region are: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.

Southwest Region

Problems per 100 Calls

Included in the Southwest Region are: Arkansas, Kansas, Missouri, Oklahoma and Texas.

West Region

Problems per 100 Calls

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.

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, Platts, Capital IQ, J.D. Power and Associates, McGraw-Hill Construction and Aviation Week. The Corporation has more than 280 offices in 40 countries. Sales in 2008 were $6.4 billion. Additional information is available at www.mcgraw-hill.com.

J.D. Power and Associates Media Contacts:

John Tews; Troy, Mich.; (248) 312-4119; [email protected]

Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103; [email protected]

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.

SOURCE J.D. Power and Associates