According to the J.D. Power and Associates 2009 U.S. Wireless Prepaid
Customer Satisfaction Index Study, Prepaid carrier NET10 ranks highest in
overall customer satisfaction among non-contract wireless user. The study also showed an increase in monthly plan services, pay-as-you-go has a higher satisfaction rate and demographic differences with older users.
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.