J.D. Power and Associates Reports: Cable Modem Usage Gains Market Share as Internet Customers Continue to Move to High-Speed Service

Transcription

1 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 (Bright House Networks) and WOW! Top Regional Rankings for High-Speed Internet Providers WESTLAKE VILLAGE, Calif.: 30 October 2008 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 released today. Now in its 11 th 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 DSL penetration among Internet customers has also increased to 30 percent in 2008 from 27 percent in 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 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. (Page 1 of 2)

2 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 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 For more information, view ratings on high-speed internet service providers and dial-up internet service providers or read an article on. 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. 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 J.D. Power and Associates Media Relations Contacts: John Tews Aimee Canlas Troy, Mich. Westlake Village, Calif. (248) (805) 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.

3 # # # (Page 2 of 2) NOTE: Five charts follow.

4 Dial-Up Segment EarthLink Net 633 United Online 630 MSN 602 Dial-Up Segment Average AOL Net 551 Source: J.D. Power and Associates and Associates as the publisher and the J.D. Power and Associates as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. Power Circle Ratings are derived from consumer ratings in J.D. Power

5 High-Speed Providers: East Region Cablevision 650 EarthLink 643 Embarq Cox 627 Verizon Road Runner (Time Warner Cable) Frontier East Region Segment Average 611 RCN 593 Comcast 576 Charter 572 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. Source: J.D. Power and Associates and Associates as the publisher and the J.D. Power and Associates as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. Power Circle Ratings are derived from consumer ratings in J.D. Power

6 Road Runner (Bright House Networks) High-Speed Providers: South Region Verizon Insight EarthLink Cox Embarq South Region Segment Average Road Runner (Time Warner Cable) Cable One Comcast Windstream CenturyTel Charter Mediacom South Region includes: Alabama, Arkansas, Florida, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee and Texas. Source: J.D. Power and Associates and Associates as the publisher and the J.D. Power and Associates as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. Power Circle Ratings are derived from consumer ratings in J.D. Power

7 High-Speed Providers: North Central Region WOW! 702 Cincinnati Bell 665 Cox 663 Insight 653 EarthLink 644 Verizon 633 Road Runner (Time Warner Cable) CenturyTel North Central Region Segment Average Embarq Charter 564 Comcast 559 North Central Region includes: Illinois, Indiana, Michigan, Ohio and Wisconsin. Source: J.D. Power and Associates and Associates as the publisher and the J.D. Power and Associates as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. Power Circle Ratings are derived from consumer ratings in J.D. Power

8 High-Speed Providers: West Region Cox 641 EarthLink 630 Verizon West Region Segment Average 616 Qwest 611 Cable One 607 Embarq 607 Comcast 595 Frontier Road Runner (Time Warner Cable) Charter 563 Mediacom 558 West Region includes: Arizona, California, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming. Source: J.D. Power and Associates and Associates as the publisher and the J.D. Power and Associates as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. Power Circle Ratings are derived from consumer ratings in J.D. Power