Customer Satisfaction With ISPs Rises

    October 28, 2009

Overall consumer satisfaction with high-speed Internet service providers (ISPs) has increased from 2008, mainly due to improvements in performance and reliability, according to a new report by J.D. Power and Associates.

The study measures customer satisfaction with high-speed Internet service based on five factors: performance and reliability; cost of service; customer service; billing; and offerings and promotions.

The study found that overall satisfaction with high-speed Internet service is 639 on a 1,000-point scale-an increase of 22 index points compared with 2008.

"In many instances a household’s Internet connection acts as the backbone of its voice, video and information services, making the provider’s ability to provide a fast, reliable connection particularly critical," said Frank Perazzini, director of telecommunications at J.D. Power and Associates.


"As households become more dependent on services provided via the Internet, eliminating outages and providing consistent connection speeds will become necessities in Internet service providers’ business models."

Among customers who bundle services from their ISP, the most popular option is a combination of video and Internet services, selected by one-third of customers. The percentage of customers who bundle voice, video and data services has increased from 16 percent in 2008 to 19 percent in 2009.

In addition, the proportion of customers who indicate they "probably will" or "definitely will" bundle their Internet service with other voice or video services in the next year has increased to 52 percent in 2009 from 43 percent in 2008.

Other highlights from the report include:


  •     The proportion of high-speed Internet service customers who indicate they are loyal to their provider has increased by two percentage points from 2008, to 32 percent in 2009. Additionally, 66 percent of customers state they "definitely will" or "probably will" recommend their provider to others in 2009-an increase of four percentage points, compared with 2008.
  •  Among customers who contacted their service provider to resolve a problem or question, average hold times have decreased by nearly 30 seconds in 2009, compared with 2008.

"Internet service may be considered the lynchpin of the bundled offering, serving to drive both customer loyalty and incremental sales opportunities," said Perazzini.

"As competition for new customers increases among Internet service providers, retaining the existing customer base while promoting additional voice and video will continue to be critical."

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