J.D. Power and Associates Reports: Ameritech's americast Service Ranks Highest in Overall Customer Satisfaction Among Residential Cable/Satellite TV Subscribers

Business Wire, Sept 6, 2001

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AGOURA HILLS, Calif.--(BUSINESS WIRE)--Sept. 6, 2001

A Cable Company Outranks Satellite Companies

for the First Time in Study

In its first year surveyed, Ameritech New Media's americast(TM) cable service ranks highest in customer satisfaction among cable/satellite TV subscribers, according to the J.D. Power and Associates 2001 Residential Cable/Satellite TV Customer Satisfaction Study(SM) released today. This marks the first time a cable provider has outranked a satellite company in customer satisfaction in the study, which has been conducted annually since 1996.

Ameritech's cable service earns its top ranking by scoring significantly above industry average in all six factors driving overall customer satisfaction: cost of service, credibility/billing, program offerings, equipment and service capabilities, customer service and reception quality. Ameritech, which provides cable service to communities in Ohio, Illinois and Michigan, also scored significantly above last year's top-ranked provider, DISH Network, in three factors: program offerings, equipment and service capabilities, and customer service.

"Ameritech has clearly charted a course to exceed customer expectations with strong scores across the board," said Grady Gibbs, study director for J.D. Power and Associates.

Despite Ameritech's strong performance, satellite companies as a whole still outperform cable companies in customer satisfaction.

"The overall customer satisfaction performance gap between satellite and cable providers remains sizeable," said Steve Kirkeby, senior director for telecommunications at J.D. Power and Associates. "Cable companies are attempting to strengthen their competitive positions by upgrading their systems to digital."

The cable industry trend toward digital subscription remains strong, with more than 27 percent of cable households reporting subscription to digital service -- up from 11 percent in 2000. Thirty percent of cable households report at least some interest in changing their service to digital within the next year.

Both satellite and cable users cite convenience, receiving a single bill and having only one contact for questions as the top reasons they would switch to one company for all their telecommunications needs. Nearly 39 percent of all cable/satellite TV households report that they would consider bundling all their telecommunications services with a single company. Among households that would consider bundled telecommunications services, 37 percent would choose their local telephone company, while 43 percent would prefer their cable or satellite TV provider.

The 2001 Cable/Satellite TV Customer Satisfaction Study is based on responses from more than 4,100 U.S. households that evaluated 14 different satellite or cable TV providers. These 14 providers comprise more than 80 percent of the domestic market share for cable/satellite TV service. Eighty-three percent of the U.S. population subscribes to cable or satellite TV service.

Headquartered in Agoura Hills, Calif., J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on actual responses from millions of consumers annually. J.D. Power and Associates can be accessed through the Internet at www.jdpa.com. Media e-mail contact: michael.greywitt@jdpa.com or john.tews@jdpa.com.

This press release is provided for editorial use only. No advertising or other promotional use can be made of the information in this release or J.D. Power and Associates survey results without the express prior written consent of J.D. Power and Associates.

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