Light Reading

Verizon, Cox Rank Tops With Business

Alan Breznick

Verizon Communications and Cox Communications generally do the best job of delivering wireline data, voice and video services to US businesses, according to the latest report from market research firm J.D. Power.

In its annual study of commercial customer satisfaction with wireline telecom providers, J.D. Power found that both very small firms (companies with up to 19 employees) and small-to-midsized businesses (SMBs) (companies with 20 to 499 employees) ranked Verizon Communications Inc. (NYSE: VZ) the highest.

Improving upon its second-place ranking in last year's survey, Verizon beat out all other major US telcos and cable operators in both categories and almost achieved a hat-trick, coming in a close second among large enterprises (companies with 500 or more employees).

As it did last year, Cox Communications Inc. starred among the big US cable providers, although it didn't quite match last year's stellar performance when it captured top honors in two of the three segments. The third-largest US MSO came in a close second to Verizon in both the very small business and SMB segments, while edging out Verizon for the top spot in the large enterprise category. (See Small Firms Love Cable.)

Unlike last year, none of the other major US cable and telecom providers really distinguished themselves in this year's customer satisfaction rankings. Of the rest, only AT&T Inc. (NYSE: T) managed to score higher than the industry average in any of the three categories, narrowly beating the average index score in the large enterprise arena.

Instead, Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), Charter Communications Inc. and CenturyLink Inc. (NYSE: CTL) all came in below the industry index average in all three segments. Most notably, TW Cable, which ranked highest in the large enterprise category just last year, tumbled to the bottom of the scale this year, despite its strong growth in commercial services revenues.

Get the latest updates on the business services market by visiting Light Reading's cable business services content channel.

In another significant study finding, nearly one in six business customers, or 16%, indicated that they are likely to switch telecom providers in the next 12 months. SMBs showed the greatest propensity to switch, with one in five, or 20%, indicating that they're likely to change providers.

By far, firms cited better pricing from an alternative provider as their top reason to switch, with 73% of respondents choosing this option. Some 30% chose new features of services plans offered, while 29% picked favorable pricing options and 28% selected better/more reliable service performance.

The study also found that both short-term and long-term service outages have markedly dropped since 2011. The average number of short-term data outages (lasting less than five minutes) experienced by customers during the past six months fell by more than 28% during the three-year span, while the average number of long-term outages (more than five minutes) dipped by more than 16%.

Such outages make a big difference in customer retention efforts. The study found that companies experiencing two or more lengthy outages after they purchase services are about three times as likely to change telecom providers as those that don't experience any outages.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
The comms industry is rallying to the cause of open, independent interoperability testing.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Interviews
Top Tips for FTTH Operators

10|8|15   |   02:26   |   (0) comments

At Gigabit Europe 2015, Ventura Team co-founder Richard Jones talks about some of the key business case considerations for FTTH network operators.
LRTV Interviews
M-net Calls for FTTx Unity

10|8|15   |   03:45   |   (0) comments

At the Gigabit Europe event, Jörn Schoof from M-net, the Munich city network operator, calls for industry collaboration on fiber broadband access rollouts.
LRTV Documentaries
The Business Case Challenge for NFV

10|7|15   |   03:47   |   (0) comments

Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
LRTV Interviews
JT Offers Some Gigabit Lessons

10|7|15   |   4:08   |   (1) comment

Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
LRTV Interviews
AT&T's Chiosi on the Potential of Open Source

10|6|15   |   06:27   |   (0) comments

AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
LRTV Interviews
Network Security in a Gigabit World

10|6|15   |   05:52   |   (0) comments

Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
LRTV Documentaries
Telefónica: In Search of Virtual Simplicity

10|5|15   |   07:30   |   (0) comments

Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
LRTV Interviews
Gigabit Europe Takeaways

10|5|15   |   03:47   |   (0) comments

Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
Women in Comms Introduction Videos
Intel Urges Women to Take Advantage of Their Seat at the Table

10|5|15   |   4:27   |   (1) comment

Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
LRTV Interviews
BT Updates on Plans

10|2|15   |   03:16   |   (2) comments

Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
Telecom Innovators Video Showcase
Sonus Shakes Up SD-WAN

10|2|15   |   7:22   |   (0) comments

Sonus CTO Kevin Riley sat down with Light Reading to discuss the trajectory of the company, its SDN ambitions and why Sonus is taking a market-disruptive approve to SD-WAN.
LRTV Interviews
CityFibre's Gigabit Vision

10|1|15   |   03:18   |   (1) comment

Mark Collins, director of Strategy & Public Affairs at competitive UK city network operator CityFibre, talks about his company's plans to help build Gigabit Cities.
Upcoming Live Events
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Network appliances have a strong value proposition in today's networks and will continue to do so in the NFV and SDN-enabled networks of tomorrow.
Hot Topics
Eurobites: Dunroamin'
Paul Rainford, Assistant Editor, Europe, 10/2/2015
M&A Speculation Swirls Around Juniper
Ray Le Maistre, Editor-in-chief, 10/6/2015
Cisco's Chambers Rules Out Political Bid
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/6/2015
Infinera Fleshes Out Its Metro 100G Story
Ray Le Maistre, Editor-in-chief, 10/7/2015
AT&T Gets Green Light for VoWiFi
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/7/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
Cats with Phones
"What?! I'm on with Finisar about their stock price tanking" Click Here