Report: Wireless Carriers Show Steady Improvement in Timeliness of Resolving Customer Care Issues (Press Release)

J.D. Power and Associates Reports: Wireless Carriers Show Steady Improvement in Timeliness of Resolving Customer Care Issues

T-Mobile Ranks Highest in Wireless Customer Care Performance for a Sixth Consecutive Reporting Period

WESTLAKE VILLAGE, Calif., July 25 -- Wireless customers who experience problems with their service are increasingly reporting that their issues are being resolved in a timely manner, according to the J.D. Power and Associates 2007 Wireless Customer Care Performance Study(SM)-Volume 2 released today.

The semi-annual study measures customer satisfaction with their wireless carrier's customer care service based on experiences with three point-of-contact methods: telephone calls with a service representative and/or automated response system (ARS); visits to a retail wireless store; and online Internet connection. Within each contact method, processing issues such as problem resolution efficiency and hold-time duration are also measured.

The study finds that among wireless customers who contact their carrier with a service issue, 81 percent report having the problem resolved in what they consider a "timely manner." The percentage of customers who experience timely problem resolution has steadily improved since 2004, when just 75 percent of customers reported their issues were being resolved efficiently. The improvement in problem resolution can primarily be attributed to an overall decrease in the number of call quality issues, such as dropped calls and coverage problems. In particular, 28 percent of wireless customers with service problems contacted their carrier due to call quality issues, which is down considerably from 48 percent in 2004.

"It's encouraging to see that wireless carriers are successfully lowering the number of problems customers experience related to call quality service issues, as this has improved the efficiency with which these problems are resolved," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "It is in the best interest of service providers to continue this trend, as it has a direct impact on the financial bottom line. Customers who are satisfied with their carrier's service are more likely to remain loyal and spend more money on additional services."

Overall satisfaction scores among wireless customers who report having their problem resolved in a timely manner are, on average, four times higher than those whose problems were not resolved efficiently (62% and 16%, respectively). Customer intention to switch wireless carriers is also six times higher among those whose problem was not resolved at all (19%) vs. those customers whose problem was resolved (3%).

For a sixth consecutive reporting period, T-Mobile ranks highest among the five largest wireless carriers by continuously providing customers who contact the carrier for service or assistance with a positive experience. With an index score of 108, T-Mobile performs particularly well in the ability to resolve problems in one contact, keeping hold times to a minimum, and customer satisfaction with the automated response system (ARS) channel. AT&T (101) and

Verizon Wireless (100), respectively, follow T-Mobile in the rankings.The study also finds several key wireless customer care patterns:

-- More than 40 percent of wireless customers have contacted the customer
care service or assistance within the past year. Additionally, among
customers who contacted the service department, 43 percent had a
billing-related service inquiry, and 56 percent of these contacts were
attributed to inaccurate charges.
-- Among customers who contact their carrier, 73 percent do so by
telephone and 23 percent do so through their carrier's retail store. E-
mail/Internet accounts for only 4 percent of customer contacts.
-- The average initial reported hold time on calls to the customer care
service is 3.17 minutes-down from 3.58 minutes in the last reporting
period (January 2007). Additionally, customers who visit the carrier's
retail store report that it takes, on average, more than 8 minutes
before they speak with a representative.

Overall Customer Care Index Rankings

T-Mobile -- 108
AT&T -- 101
Verizon Wireless -- 100
Industry Average -- 100
Alltel -- 99
Sprint Nextel -- 92

The 2007 Wireless Customer Care Performance Study-Volume 2 is based on responses from more than 10,500 wireless customers who contacted their carrier's customer care department within the past year. The results are compiled from the past two reporting waves, which were conducted in January and April 2007.

For more information on customer satisfaction with wireless service, cell phone call quality, wireless retail sales, cell phone handsets, and business wireless service, please visit http://www.JDPower.com.

About J.D. Power and Associates

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, performance improvement, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on cell phone ratings, car reviews and ratings, car insurance, health insurance and more, please visit http://www.JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com.