J.D. Power and Associates Reports: Internet Service Subscribers Are Increasingly Satisfied with Their Spam Protection, But Less Satisfied with Hacker and Virus Protections

Business Wire, Sept 8, 2004

WESTLAKE VILLAGE, Calif. -- EarthLink Ranks Highest in Customer Satisfaction among Both Dial-Up and High-Speed Providers

Residential Internet users are much more satisfied with their Internet Service Providers' protections against spam than they were in 2003, but appear to believe that their ISPs are losing the battle against hackers and viruses, according to the J.D. Power and Associates 2004 Internet Service Provider Residential Customer Satisfaction Study(SM) released today.

The study, now in its seventh year, examines seven factors contributing to overall satisfaction with dial-up and high-speed service. In both segments, residential users give the major ISPs the biggest satisfaction gains over 2003 for their ability to protect subscribers from spam. On the other hand, hacker/virus protection is the only attribute where satisfaction declined in both segments.

"While spam continues to increase, most ISPs are beginning to show success in offering protection from it," said Steve Kirkeby, senior director of telecommunications research at J.D. Power and Associates. "However, the same subscribers who express this appreciation are saying that their ISPs should be taking a more leading role in fighting hackers and viruses. Consumers are managing more aspects of their lives on the Internet -- banking, paying bills, managing their calendars and relationships -- and they have a greater urgency for privacy and security. Protection against security threats such as hackers and viruses represent the sole black mark in satisfaction trends across both segments."

Household Internet penetration grew to 66 percent in 2004 -- only a 2 percent growth from 2003. The increase between 2002 and 2003 was 7 percent. While overall Internet penetration is slowing down, high-speed penetration is still growing at a fast pace. The study finds 39 percent of those with any type of Internet connection have a broadband connection -- up from 26 percent in 2003.

Other interesting findings from the study include:

--Broadband subscribers report spending an average of 18 personal hours per week on the Internet -- up from 17.6 in 2003. Dial-up users spend 15.6 hours per week -- down from 16.1.

--High-speed subscribers report spending $44.12 per month on service -- up from $42.15 in 2003.

--Dial-up service monthly spending averages $19.14 per month -- down from $19.33 in 2003.

EarthLink ranks highest in overall customer satisfaction among the 9 dial-up and 12 high-speed Internet service providers included in the rankings. EarthLink attained top scores in five of the seven factors that contribute to overall satisfaction for dial-up providers: performance and reliability, image, customer service, offerings and promotions, and e-mail services. The remaining factors are cost of service and billing. EarthLink is followed in the dial-up ranking by Juno/NetZero, AT&T WorldNet and BellSouth, respectively. EarthLink scores highest among high-speed providers in two factors: image and e-mail services. In the high-speed ranking, EarthLink is followed by Verizon, Road Runner, and BellSouth and Cox in a tie, respectively.

The 2004 Internet Service Provider Residential Customer Satisfaction Study is based on responses from more than 9,500 residential customers of Internet service providers nationwide.

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered 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.jdpower.com.