Subject: [NEXTEL-1] Survey reports on voice quality issue affecting subscriber satisfaction

From: Marcel <[email-masked]>
Date: Tue, 25 Feb 2003 13:41:02 -0500

Survey reports on voice quality issue affecting subscriber satisfaction

The wireless industry has long known that network issues such as coverage, dropped calls,
and echo impact customer satisfaction and retention. A survey by Isurus Market Research,
commissioned by NMS Communications, shows that network sound quality is an additional
"hidden" issue that impacts customer churn and average revenue per user (ARPU). In the
phone survey of 450 active mobile subscribers throughout the USA, respondents cited voice
and sound quality as differentiators that could affect their mobile phone usage and choice
of operator. In particular, 72% of respondents indicated they would take and place more
calls in noisy environments such as their cars, in restaurants, or on city streets if the
quality of those calls was improved.
Despite continued emphasis on pricing plans, coverage, and data service offerings as
competitive differentiators among the nation's wireless carriers, subscribers consider
sound quality an important feature that is not yet adequately addressed. After hearing a
sample conversation with a new network voice quality system, 61% of those surveyed said
they would consider switching providers to obtain this quality of service.
"Improvements in call quality represent rich and still untapped market opportunities for
wireless carriers to reduce subscriber churn, create additional pricing leverage, and
build quality associations into wireless market brands," said Scott Ellison, program
director, Wireless and Mobile Communication, of IDC. "Wireless subscribers, the media, and
regulators are all increasingly aware of the importance of quality issues for wireless
services, and IDC research also shows that wireless service quality is becoming a more
important issue to the wireless market."
Other research findings included that 38% of the study's participants feel their mobile
phone quality is not as good as the quality of their landline phone, although a quarter of
respondents indicated they would consider paying more for improved voice quality. Also,
when bothered by poor voice quality, most people choose not to complain as it isn't "worth
the hassle" or presume there are technology limitations that can't be addressed.

Posted to the site on 25-Feb-03
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