DENVER-Personal communications services providers have overall customer satisfaction levels significantly higher than traditional cellular carriers, according to a new J.D. Power and Associates study that analyzed 18 PCS markets in the United States.
The study, “Analysis of Personal Communications Services Report,” explored in depth three of the 18 markets where PCS gained a significant market share. The three markets were Charlotte, N.C., San Diego and Washington, D.C./Baltimore. BellSouth Mobility DCS, Cox California PCS, operating as Sprint PCS, and Sprint Spectrum L.P. achieved the highest rating respectively in each of these markets in J.D. Power’s third annual Wireless Customer Satisfaction Study released in September.
Call quality, corporate image/credibility and flexible pricing plans are the key strengths of PCS providers that allow them to distinguish their service from traditional cellular providers’, concluded the study. However, customers see PCS operators as weaker in geographic coverage and roaming capabilities.
The marketing information services firm found that upon entering a market, PCS carriers spark the demand for wireless services, acquire one-third of new wireless customers, drive down prices by 10 percent to 20 percent and gain substantial market shares in a short time. Additionally, increases in price-driven competition, technology choices and new products have led 25 percent of wireless and cellular customers to indicate their desire to switch providers. This tendency to switch also reflects the significant number of cellular customers who are migrating to PCS, said the study.
“Over one-third of U.S. households subscribe to a wireless service and that is expected to increase to over 40 percent within the next year,” said Peter Dresch, director of telecommunications market analysis with J.D. Power. “New entrants utilizing the latest technology and employing aggressive pricing strategies are likely to capture a more substantial portion of the wireless market. The survey results have significant implications for all wireless providers.”
