Verizon Wireless Likely to be Least Affected by LNP
SCOTTSDALE, Ariz., November 3, 2003 -
With customers rating the company the highest overall on such attributes as service price, geographic coverage, network quality/reliability, and customer service, Verizon Wireless appears to be in the least threat of business customer turnover once Local Number Portability (LNP) is implemented. According to a recent survey of its Wireless Panel (made up of business users, primarily), In-Stat/MDR (http://www.instat.com) finds that with more than half of the respondents having stuck with their providers for three or more years, end-users tend to stay with companies that they like. This bodes well for Verizon Wireless, having rated the highest on several scores such as overall satisfaction (rating the carrier a “4” or a “5” on a 5-point scale – extremely or very satisfied with their provider), satisfaction based on the top eight and top four drivers of satisfaction, among others. Clearly, this explains why the company has come out as the most vocal proponent of LNP implementation.
“Wireless churn will increase once LNP is implemented on November 24th, 2003. With that date not far off, wireless carriers must take a good look at their customer satisfaction and take measures to stem off as much churn as possible on and after that date,” says Becky Diercks, Director of In-Stat/MDR's Custom Research and Principal Analyst, Wireless Data/Internet Research Services. “Those carriers with low satisfaction stand the greatest potential loss of customers once LNP is implemented.” These carriers include Alltel, Cingular and Sprint, among others.
In-Stat/MDR also found that:
AT&T Wireless and Verizon Wireless currently have the highest cellular penetration in the business environment, and therefore potentially stand the most to lose, as it pertains to that segment, on and after November 24th, 2003.
In the business environment, corporate contracts are increasingly being implemented. This means that wireless carriers are challenged not to just satisfy the end-user customers, but also to keep its corporate decision-maker customers happy, by providing superior pricing programs based on volume, network management tools, and customer service.
Recent In-Stat research, LNP D-Day Forces Cellular Carriers to Re-Assess The Drivers of Customer Satisfaction (#IN030546WI), details the key drivers of cellular customer satisfaction, and illustrates how carriers' customers rated them on an overall basis (based on several different scores), as well as on key driving attributes (i.e., service price, network quality/reliability, geographic coverage and customer service, wireless features/data services, wide variety of handsets). Detail is provided for the top carriers, including: Alltel, AT&T Wireless, Cingular, Nextel, Sprint PCS, T-Mobile, US Cellular and Verizon Wireless. The report is based on interviews with more than 1,000 business cellular users.
For more information, contact:
Becky Diercks, Director of Custom Research and Panels Products
Phone: 617-558-4748
Email: rdiercks@reedbusiness.com
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