Light Reading
Small and midsized firms both rate Verizon highest for overall service quality, while Cox takes the crown with large enterprises in the latest annual J.D. Power study.

Verizon, Cox Rank Tops With Business

Alan Breznick
9/1/2014
50%
50%

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
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (0) comments


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Like Us on Facebook
Twitter Feed