J.D. Power Reports: Strong Network Quality Performance Is Key to Higher Customer Retention for Wireless Carriers

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1 Kw J.D. Power Reports: Strong Network Quality Performance Is Key to Higher Customer Retention for Wireless Carriers Ranks Highest in Wireless Network Quality Performance in All Six Regions WESTLAKE VILLAGE, Calif.: 27 August 2015 Providing a strong network that minimizes dropped calls, slow Web speeds and downloads and delayed text notifications can improve loyalty and reduce churn among wireless customers, according to the J.D. Power 2015 U.S. Wireless Network Quality Performance Study SM released today. Now in its th year, the semiannual study is based on 10 problem areas of the customer experience: dropped calls; calls not connected; audio issues; failed/late voic s; lost calls; text transmission failures; late text message notifications; Web connection errors; slow downloads; and connection errors. Network performance issues are measured as problems per 100 (PP100) network connections, with a lower score reflecting fewer problems and better overall performance. The study finds that customer loyalty to their carrier is considerably higher among those who experience fewer problems with network quality. Among wireless customers who experience 9 PP100 or fewer, 39 percent say they definitely will not switch carriers in the near future. Loyalty rates drop substantially when customers experience 10 PP100 or more, with only 20 percent saying they definitely will not switch. That pattern holds true regardless of the type of network quality problem or type of device used to access a network. Notably, mobile broadband device owners have the largest difference in PP100 scores between owners who say they definitely/probably will not switch and those who definitely/probably will switch (21 PP100 vs. 40 PP100, respectively). Enhancing network performance to ensure customers consistently experience a high-quality connection especially when using Internet-based services can substantially improve loyalty for wireless carriers, said Kirk Parsons, senior director and technology, media & telecom practice leader at J.D. Power. This can be accomplished by deploying the latest technology to improve bandwidth efficiency, data connection speeds and reliability. To retain customers, it is essential for carriers to proactively expand and upgrade networks to align with the latest generation of services and devices, particularly those that rely on data speed and consistent connections, such as broadband devices. KEY FINDINGS Overall wireless network quality problem incidence is PP100 in 2015 Vol. 2 vs. PP100 in Vol. 1. On average, wireless customers experience the highest number of data quality problems when using a mobile broadband device (30 PP100), followed by tablet (17 PP100) and phone (11 PP100). While 17 percent of wireless customers have a tablet with a data plan from their wireless carrier, 10 percent have a mobile broadband device, such as an air card or hotspot. (Page 1 of 2)

2 When examining types of data problems, connection errors occur more frequently on tablets than phones (9 PP100 vs. 6 PP100, respectively). In contrast, issues related to slow mobile Web connections are more likely to occur on phones (16 PP100) and mobile broadband devices (16 PP100) than tablets ( PP100). Overall network quality is highest in the Mid-Atlantic and North Central regions (11 PP100 each), followed by the Southeast, Southwest, and West regions ( PP100 each) and the Northeast region ( PP100). Study Rankings ranks highest in all six regions Northeast, Mid-Atlantic, Southeast, North Central, Southwest and West with typically lower PP100 scores in call quality, messaging quality and data quality. The 2015 U.S. Wireless Network Quality Performance Study is based on responses from 42,836 wireless customers. The study was fielded January through June Carrier performance is examined in six geographic regions: Northeast, Mid-Atlantic, Southeast, North Central, Southwest and West. In addition to evaluating the network quality experienced by customers with wireless phones, the study also measures the network performance of tablets and mobile broadband devices. Media Relations Contacts John Tews; Troy, Mich.; ; media.relations@jdpa.com About J.D. Power and Advertising/Promotional Rules About McGraw Hill Financial # # # (Page 2 of 2) Note: Six charts follow.

3 Northeast Region 10 Northeast Average Note: Included in the Northeast region are Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this

4 Mid-Atlantic Region 10 Mid-Atlantic Average 11 Note: Included in the Mid-Atlantic region are Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this

5 Southeast Region 9 Southeast Average Note: Included in the Southeast region are Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is

6 North Central Region 9 North Central Average 11 Note: Included in the North Central region are Illinois, Indiana, Michigan, Ohio and Wisconsin and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is

7 Southwest Region 10 Southwest Average 15 Note: Included in the Southwest region are Arkansas, Kansas, Missouri, Oklahoma and Texas and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is

8 West Region 10 West Average Note: 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 and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is