Wireless Call Quality Problems Continue to Decline as the Transition to 3G Networks Takes Hold

J.D. Power and Associates Reports: Wireless Call Quality Problems Continue to Decline as the Transition to 3G Networks Takes Hold

Verizon Wireless Ranks Highest in Five of the Six Regions in Call Quality Performance

As the number of reported wireless problems reaches historically low levels, the overall rate of customers experiencing a wireless call quality problem has declined for a third consecutive reporting wave, according to the J.D. Power and Associates 2007 Wireless Call Quality Performance Study(SM)-Volume 1 released today.

Now in its fifth year, the study currently measures wireless call quality semi-annually. Call quality is based on seven customer-reported problem areas that impact overall carrier performance: dropped/disconnected calls; static/interference; failed connection on the first try; voice distortion; echoes; no immediate voice mail notification; and no immediate text message notification. Problems are measured by the number experienced per 100 calls (PP100), with a lower PP100 score reflecting fewer total problems experienced.

The study finds that the percentage of wireless calls with at least one problem has declined by 14 percent since the last two reporting periods (March-April and June-July 2006). Considerable improvements have been made with regard to interference/static, voice distortion and echoes. The number of calls with interference/static and voice distortion has decreased by 33 percent compared with the last reporting period in 2006, while the number of calls experiencing echoes, which occur when voice patterns become inconsistent due to digital frequency issues, has decreased by 20 percent over the same time period.

“Wireless providers have clearly made great strides in improving call quality,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “With an increasingly competitive environment and an increase in the number of services used in conjunction with a cell phone, carriers that offer superior network quality are more likely to attract new customers and increase customer retention. In fact, improving network quality is a beneficial financial incentive for wireless carriers, as customers experiencing at least one call quality problem are almost four times more likely to definitely switch carriers in the future.”

The study also finds that part of the improvement in call quality can be attributed to the industry transition to third-generation networks (3G) and mobile devices that support higher data speeds, always-on data access and greater voice capacity.

“One key advantage to this technology upgrade is that carriers can greatly increase the capacity of handling voice and data transmissions with existing network equipment,” said Parsons. “As more wireless subscribers use cell phones that are 3G-enabled, the rate of call quality problems decreases significantly. For example, problems occur at nearly one-half the PP100 rate when calls are placed or received using a 3G-enabled mobile device compared with calls made or received using lower-generation devices.”

Verizon Wireless performs particularly well in the study, ranking highest in four of the six U.S. regions examined, while tying with Qwest to rank highest in a fifth region. U.S. Cellular also ranks highest in one region. Study results by region are:

Northeast Region: Verizon Wireless ranks highest in the region, with fewer problems reported with interference/static, dropped/disconnected calls, initial connections and voice distortion.

Mid-Atlantic Region: Verizon Wireless ranks highest, with fewer problems experienced with voice distortion and echoes.

Southeast Region: Verizon Wireless ranks highest in the region, with fewer problems with interference/static and voice distortion.

North Central Region: U.S. Cellular ranks highest for a third consecutive time with fewer problems in interference/static, initial connection, dropped/disconnected calls and voice distortion.

Southwest Region: Verizon Wireless ranks highest in the region for the first time, with fewer problems with echoes.

West Region: Qwest and Verizon Wireless rank highest in a tie. Qwest customers report fewer problems in the area of voice distortion, and Verizon Wireless performs well in initial connections.

The 2007 Wireless Call Quality Performance Study-Volume 1 is based on responses from 29,346 wireless users. The results are from the two most recent reporting waves, September-October 2006 and January-February 2007. Volume 2 of the 2007 Wireless Call Quality Performance Study will be issued in September 2007.
Northeast Region
Call Quality Index Rankings

Verizon Wireless 108
*Northeast Region Average 102
Cingular 100
Sprint Nextel 100
T-Mobile 90

Included in the Northeast Region are: Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont.
Mid-Atlantic Region
Call Quality Index Rankings

Verizon Wireless 109
Cingular 105
*Mid-Atlantic Region Average 105
T-Mobile 101
Sprint Nextel 99

Included in the Mid-Atlantic Region are: Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia.
Southeast Region
Call Quality Index Rankings

Verizon Wireless 107
Alltel 103
T-Mobile 103
*Southeast Region Average 101
Sprint Nextel 100
Cingular 96

Included in the Southeast Region are: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee.
North Central Region
Call Quality Index Rankings

U.S. Cellular 112
T-Mobile 106
Verizon 106
Alltel 105
*North Central Region Average 105
Sprint Nextel 104
Cingular 100

Included in the North Central Region are: Illinois, Indiana, Michigan, Ohio and Wisconsin.
Southwest Region
Call Quality Index Rankings

Verizon Wireless 108
T-Mobile 104
*Southwest Region Average 102
Cingular 101
Alltel 99
Sprint Nextel 99

Included in the Southwest Region are: Arkansas, Kansas, Missouri, Oklahoma and Texas.
West Region
Call Quality Index Rankings

Qwest 105
Verizon Wireless 105
Alltel 104
T-Mobile 104
Sprint Nextel 102
*West Region Average 101
Cingular 94

Included in the West Region are: Arizona, California, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, Utah, South Dakota, Washington and Wyoming.

* Regional average index score represents only major carriers included in the chart.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered global marketing information services firm operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The firm’s quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies:

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor’s, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional information is available at http://www.mcgraw-hill.com/.
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