Cable / Telecom News

Canadians say cost of wireless service too high, according to J.D. Power and Associates study


TORONTO – Koodo Mobile, SaskTel and Videotron ranked highest in customer satisfaction with wireless providers in their respective regions, according to the J.D. Power and Associates 2011 Canadian Wireless Customer Satisfaction Study.

The study, based on responses from nearly 15,000 mobile phone users between November 2010 and February 2011, examines the perceptions of wireless customers with their service, mobile phone (for both traditional mobile phones and smart phone devices) and retail experience. Satisfaction is measured across cost of service, network quality, account management, customer service, handset, offerings and promotions, and sales process.

Using a 1,000-point scale, Koodo Mobile ranked highest in Ontario with a score of 699, performing particularly well in cost of service; SaskTel ranked highest in the West for customer satisfaction with a score of 678; while in the East region, Videotron ranked highest in customer satisfaction with a score of 765. Click here for more on the study’s Canadian wireless service provider rankings.

The study also found that satisfaction with cost of service averages only 551 out of 1,000, compared with an average of 648 for overall satisfaction, and is the area of the wireless experience with which customers are least satisfied. On average, customer-reported monthly bills for contract service have increased to $78 in 2011 from $71 in 2009, partially driven by the increase in penetration of smart phones and data plans. This year, 39% of customers report owning a smart phone, up from 25% in 2009, while the proportion of customers who report having a data package increased to 60% in 2011 from 15% in 2009.

Low satisfaction levels with cost of service have led to increases in switching intent among wireless customers, the study continued, with 17% of customers who had a wireless sales experience within the past six months reportedly switching carriers.  In addition, 28% customers said they "strongly agree" that they would consider switching to one of the new wireless service providers (including Wind Mobile, Public Mobile and Mobilicity) if its offerings met their needs, up from 21% in 2009.

The study also found the following patterns among wireless customers:
– Text is the feature used most often, with an average of 18.2 messages sent or received in a 48-hour span;
– Web usage (mainly emails) also averages 18.2 messages sent or received in the same time frame;
– Calls account for 11.3 communications, on average, in a 48-hour span; and
– Overall network quality averages 11.2 problems per 100 calls (PP100), with customers reporting more problems with mobile web and email (14.8 PP100, on average).

www.jdpower.com