J.D. Power and Associates Reports: Customers Respond Positively as Cable and Voice Providers Leverage Web Sites to More Effectively Address Customer Service Issues

WESTLAKE VILLAGE, Calif., Sept. 10 /PRNewswire/ -- Voice customers who use the Web for customer service inquiries have higher satisfaction compared with those who use the telephone, according to the J.D. Power and Associates 2008 Residential Telephone Customer Satisfaction Study(SM) released today.

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The study measures customer satisfaction with both local and long distance telephone service in four regions across the United States. Five factors are examined in determining overall satisfaction. In order of importance, they are: customer service, performance and reliability, cost of service, billing, and offerings and promotions.

In 2008, the majority of customers (80%) continue to use the telephone for inquiries regarding their voice service, while 16 percent of customers use their provider's Web site. However, the study finds that satisfaction levels among customers who use Web channels for service inquiries are higher than satisfaction levels among customers who use a telephone to call a service center. On average, satisfaction averages 641 on a 1,000-point scale among Web users, compared with 626 for telephone users.

"In an increasingly competitive market where providers are constantly seeking ways to better manage the costs associated with service support, promoting Web sites as a viable service channel instead of traditional telephone-based support can create significant cost savings," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "The good news is that customers are responding positively to the Web option. Voice provider Web sites offer customers useful ways to manage their billing needs, review their account information and explore available product and service offerings."

The 2008 study marks the second consecutive year that cable television providers have dominated the highest-ranking positions across all regions examined in the study.

"According to our market intelligence research on social and consumer- generated online media, customers perceive that cable companies in particular have an advantage when it comes to providing Internet-based telephone service," said Jeff Taylor, director for J.D. Power and Associates' Web Intelligence Research Division. "Customers often cite the strength of cable's existing network infrastructure as a key reason for trusting cable providers with their telephone service."

Provider results by region are:

East Region: Cablevision ranks highest in the region, performing particularly well in customer service, cost of service, billing, and offerings and promotions.

South Region: Bright House Networks ranks highest in the region and has strong performances in customer service, cost of service, billing, and offerings and promotions.

North Central Region: WideOpenWest (WOW!) ranks highest in the region, performing particularly well in customer service, cost of service, billing, and offerings and promotions.

West Region: Cox Communications ranks highest in the West and outperforms all other providers in the region in all factors driving customer satisfaction.

When examining the impact of bundled voice and data services, the study finds that overall satisfaction is higher among customers who bundle two or more services with one provider, compared with customers subscribing to phone service alone. Satisfaction among "triple-play customers" -- those subscribing to telephone, cable and Internet service -- is 23 index points higher than among those customers subscribing to just phone service.

The 2008 Residential Telephone Customer Satisfaction Study is based on responses collected in July 2008 from more than 13,600 customers nationwide who receive their local and long distance telephone service from one provider.

    Provider Satisfaction Scores by Region (Based on a 1,000-point scale):

    East Region

    Provider           Overall Satisfaction Score     Power Circle Rating
    Cablevision                     673                        5
    Time Warner Cable               647                        4
    Verizon                         640                        3
    East Region Average             639                        3
    Cox Communications              638                        3
    AT&T                            631                        3
    Embarq                          629                        2
    Comcast                         622                        2
    Frontier                        621                        2

NOTE: The East region includes Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, Washington D.C. and West Virginia.

    South Region

    Provider           Overall Satisfaction Score     Power Circle Rating
    Bright House Networks           707                        5
    Cox Communications              685                        4
    Verizon                         648                        3
    AT&T                            634                        3
    South Region Average            634                        3
    CenturyTel                      633                        3
    Comcast                         628                        3
    Time Warner Cable               615                        2
    Embarq                          614                        2
    Windstream                      601                        2
    Charter                         595                        2

NOTE: The South region includes Alabama, Arkansas, Florida, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee and Texas.

    North Central Region

    Provider           Overall Satisfaction Score     Power Circle Rating
    WideOpenWest (WOW!)             707                        5
    TDS Telecom                     682                        4
    Cincinnati Bell                 678                        4
    Time Warner Cable               631                        3
    North Central Region Average    627                        3
    Comcast                         626                        3
    AT&T                            622                        3
    Embarq                          620                        3
    Verizon                         619                        3
    CenturyTel                      616                        3
    Charter                         610                        2

    NOTE: The North Central region includes Illinois, Indiana, Michigan, Ohio
and Wisconsin.


    West Region

    Provider           Overall Satisfaction Score     Power Circle Rating
    Cox Communications              660                        5
    Comcast                         647                        4
    Qwest                           637                        3
    West Region Average             637                        3
    AT&T                            634                        3
    Verizon                         631                        3
    Embarq                          626                        2
    Charter                         605                        2
    Frontier                        603                        2

NOTE: The West region includes Arizona, California, Colorado, Iowa, Idaho, Minnesota, Montana, North Dakota, Nebraska, New Mexico, Nevada, 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             Syvetril Perryman
     Troy, Mich.           Westlake Village, Calif.
     (248) 312-4119        (805) 418-8103
     john.tews@jdpa.com    syvetril.perryman@jdpa.com

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