J.D. Power and Associates Reports: Verizon and Cincinnati Bell Rank Highest in Satisfying Long Distance Customers

Business Wire, July 18, 2002

Business Editors

Wireless and Internet Long Distance Calls Continue

to Displace Traditional Long Distance

Verizon ranks highest in residential long distance telephone customer satisfaction among high-volume users--those who spend $50 or more per month for service--and Cincinnati Bell ranks highest among mainstream users who spend less than $50 per month, according to the J.D. Power and Associates 2002 Residential Long Distance Customer Satisfaction Study(SM) released today.

Verizon's success among high-volume users is attributed to its excellent performance in five of the six factors driving overall satisfaction: cost of service, image, billing, performance and reliability, and customer service. The sixth factor is offers and promotions.

"While most other long distance carriers experienced a decrease in overall satisfaction, Verizon had an increase," said Richard Ellrodt, study director at J.D. Power and Associates. "Verizon customers are particularly pleased with the variety of services offered and the discounts for providing multiple services on one billing statement."

For the second consecutive year, Cincinnati Bell ranks highest among telephone customers who spend less than $50 per month on long distance service, leading in all factors except cost of service.

"Cincinnati Bell's problem-resolution process has been so successful that customers who have had problems with their service are nearly as satisfied as those who have not--an exceptional finding for any telephone company," Ellrodt said.

The study also shows continuing displacement of long distance calls by other forms of communication such as wireless, e-mail, Internet instant messaging and Internet-based calling. Fifty-seven percent of respondents indicated they use some alternative to making a wireline long distance phone call--up from 50 percent in 2000. Within this group, wireless increased the most dramatically, with a reported displacement of 38 percent of long distance calls--up from 33 percent in 2001.

"Despite rate decreases by long distance providers, consumers believe that alternatives such as e-mail and wireless services cost less and are more convenient to use than wireline services," said Steve Kirkeby, senior director of telecommunications services for J.D. Power and Associates. "This continuing trend poses the single largest threat to conventional long distance calling."

The 2002 Residential Long Distance Customer Satisfaction Study is based on a national representative sample of nearly 11,500 households.

Headquartered in Westlake Village, 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 responses from millions of consumers annually. Media e-mail contact: michael.greywitt@jdpa.com or john.tews@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. www.jdpa.com

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