J.D. Power and Associates Reports: NET10 Ranks Highest in Customer Satisfaction Among...

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Thu Jul 30, 2009 9:01am EDT

J.D. Power and Associates Reports: NET10 Ranks Highest in Customer
Satisfaction Among Non-Contract Wireless Users
While Pay-as-You-Go Non-Contract Plans Have Higher Levels of Satisfaction,
Non-Contract Monthly Plan Offerings Grow

WESTLAKE VILLAGE, Calif., July 30 /PRNewswire/ -- Prepaid carrier NET10 ranks
highest in overall customer satisfaction among non-contract wireless users,
according to the J.D. Power and Associates 2009 U.S. Wireless Prepaid Customer
Satisfaction Index Study(SM) released today.

(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)

NET10, included in the study for the first time this year, achieves a score of
774 on a 1,000-point scale and performs particularly well in three of the six
factors that drive overall satisfaction: performance and reliability; cost of
service; and account management. Also ranking at or above the industry average
in rank order are TracFone, Boost Mobile, Virgin Mobile, Alltel and T-Mobile.

"NET10 differentiates itself from other companies by simplifying the wireless
experience with straightforward pricing, virtually no roaming charges and
robust nationwide network coverage," said Kirk Parsons, senior director of
wireless services at J.D. Power and Associates. "Users find they don't have to
worry about restrictive calling areas and can maintain their account without
hassle."

The study finds that product offerings in the prepaid segment have changed
dramatically during the past year, with many wireless carriers increasing
their offerings of monthly plans--some of which mimic traditional contract
plans, while others offer unlimited calling and texting. More than 40 percent
of non-contract plans are monthly plans, compared with less than 30 percent in
2008.

In addition, overall satisfaction among users of pay-as-you-go plans (756, on
average) is considerably higher compared with users of monthly plans (742, on
average), driven by satisfaction with the performance and reliability and
account management factors.

The study also finds several demographic differences that distinguish
pay-as-you-go users from users of monthly prepaid service. The average
pay-as-you-go user is older, more likely to be retired and has fewer wireless
phones in their household. The average monthly prepaid plan user more closely
resembles the average contract plan user--desiring a large network, mid-range
feature phones and messaging, but without the commitment or penalties of a
contract. Two-thirds of monthly plan users report that they have switched
service from their former contracted service carrier.

"As the non-contract wireless market continues to evolve, users need to be
sure to explore all of the alternatives available to them in order to
determine the appropriate plan that suits their needs," said Parsons. "With
this increased breadth of options, wireless users can find a plan that
optimizes their wireless experience and meets their budget without requiring
them to sign a contract."

The study also finds the following key non-contract wireless usage patterns:

    --  Pay-as-you-go users spend an average of $35 for each airtime purchase,
a
        decrease of $5 from 2008.
    --  Monthly non-contract users spend an average of $25 less per month than
        do those with contracts. Monthly non-contract users report spending
$56
        per month compared with an average monthly service cost of $81 for
        contract users.
    --  Non-contract users report using 320 minutes per month--a notable
        increase from 233 minutes in 2008. Pay-as-you-go users report using an
        average of just 145 minutes, while monthly non-contract users report
an
        average of 573 minutes per month.
    --  During the past 12 months, 16 percent of non-contract users have
        switched carriers. More than half (51%) of these users previously had
        contract service.

    --  Switching intent within the next year remains steady at 12 percent,
        compared with 13 percent in 2008. Among users intending to switch, 24
        percent intend to switch to contract service.



The 2009 U.S. Wireless Prepaid Customer Satisfaction Index Study, now in its
fourth year, measures customer satisfaction with current non-contract wireless
service across six key factors. In order of importance, they are: performance
and reliability (28%); cost of service (19%); account management (17%);
initial activation (15%); offerings and promotions (12%); and customer service
(9%). The study is based on responses from 4,229 wireless users who currently
subscribe to non-contract service plans. Findings are based on a continuous
fielding period between January and June 2009.

For more information, read an article or view prepaid wireless ratings at
JDPower.com.

Customer Satisfaction Index Rankings
(Based on a 1,000-point scale)

                                             J.D. Power.com Power Circle
                                             ---------------------------
    Provider             Index Score         Ratings For Consumers
    --------             -----------         ---------------------

    NET10                   774                  5
    TracFone                773                  5
    Boost Mobile            771                  5

    Virgin Mobile           755                  4

    Alltel                  751                  3
    T-Mobile To Go          750                  3
    Industry Average        750                  3

    Verizon Wireless        741                  2
    AT&T GoPhone            735                  2
    Cricket                 732                  2
    MetroPCS                730                  2


About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement, Web
intelligence and customer satisfaction. The company's quality and satisfaction
measurements are based on responses from millions of consumers annually. For
more information on car reviews and ratings, car insurance, health insurance,
cell phone ratings, and more, please visit 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 (NYSE: MHP) 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 2008 were $6.4 billion. Additional information is available at
http://www.mcgraw-hill.com.

J.D. Power and Associates Media Relations Contacts:
John Tews; Troy, Mich.; (248) 312-4119; media.relations@jdpa.com
Syvetril Perryman; Westlake Village, Calif.; (805) 418-8103;
media.relations@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/corporate



SOURCE  J.D. Power and Associates

John Tews, Troy, Mich., +1-248-312-4119, or Syvetril Perryman, Westlake
Village, Calif., +1-805-418-8103, both of J.D. Power and Associates,
media.relations@jdpa.com
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