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Wireless spending on the rise, as are customer expectations

WESTLAKE VILLAGE, Calif.—Customer spending on wireless services continues to increase, according to the latest survey by J.D. Power and Associates—and consumers’ expectations of their wireless carriers will continue to rise along with their spending.

The firm’s latest customer satisfaction survey showed that non-voice services such as text messaging and downloads, along with overall increased voice usage, have driven an $11 jump in the average mobile bill since 2004: from $55 to $66. Taxes and number portability fees have also contributed to the rising bill. The company noted that the percentage of subscribers using text messaging on a regular basis rose by 32 percent between 2005 and 2006.

“It will be important for wireless carriers to continue to roll out new services and products to increase customer revenue as industry penetration slows and customer retention becomes more critical,” said Kirk Parsons, J.D. Power’s senior director of wireless services.

Parsons added that “customer satisfaction has a direct correlation with an increase in new product usage and therefore plays a critical role in future revenue potential for the wireless carriers.”

Interestingly, however, T-Mobile USA Inc.—which does not have a 3G network and therefore does not offer some of the more advanced services touted by other national players—still dominated the first-place rankings in overall customer satisfaction. T-Mobile USA placed or tied for first in all regions of the country for overall customer satisfaction on the strength of its customer care, cost and billing. Verizon Wireless tied for first in four areas of the U.S., performing best in call quality and brand image.

The study was based on responses from nearly 24,000 wireless subscribers and was conducted in April and July of this year.

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