Cable ISPs Shine in Study

WESTLAKE VILLAGE, Calif. -- Cable modem usage is increasing at a faster rate than DSL usage among Internet customers as dial-up use continues to decrease, according to the J.D. Power and Associates 2008 Internet Service Provider (ISP) Residential Customer Satisfaction StudySM released today.

Now in its 11th year, the study measures customer satisfaction with high-speed and dial-up Internet service providers based on five factors: performance and reliability; cost of service; customer service; billing; and offerings and promotions.

The study finds that the percentage of Internet customers who subscribe to cable modem service has increased to 41 percent in 2008 from 36 percent in 2007. DSL penetration among Internet customers has also increased to 30 percent in 2008 from 27 percent in 2007. The share of Internet users that still subscribe to dial-up service has continued to decrease and now accounts for only 25 percent of Internet subscribers, a decline of 10 percentage points since 2007.

“Customers now view Internet service as a necessity—not a luxury—and they’re looking for faster products capable of handling higher bandwidth,” said Frank Perazzini, director of telecommunications at J.D. Power and Associates. “As more movies, television shows and videos are being offered online, Internet users are looking for faster, higher quality connections to view content. With both cable modem and DSL service providing faster Internet capabilities than dial-up, users are interested in finding the best service, at the best speed, between the two connection types.”

J.D. Power and Associates