J.D. Power and Associates Reports: Managing Customer Expectations for Value, Speed and Reliability Are Key to Satisfaction and Brand Differentiation for Broadband Internet Service Providers

Plusnet Ranks Highest in Customer Satisfaction among Fixed Broadband Service Providers in the UK, While O2 Ranks Highest among UK Mobile Broadband ISPs for a Third Consecutive Year

LONDON, March 30, 2011 - As broadband Internet service becomes increasingly commoditized, service
providers that successfully manage customer expectations around network
performance and value can benefit from increased customer satisfaction and
brand differentiation, according to the J.D. Power and Associates 2011 UK
Fixed Broadband ISP Customer Satisfaction Study(SM) and the J.D. Power and
Associates 2011 UK Mobile Broadband ISP Customer Satisfaction Study(SM), both
released today.

(Logo: photos.prnewswire.com/prnh/20050527/LAF028LOGO-a)

The studies examine five factors that drive overall satisfaction with
broadband Internet service providers: performance and reliability;
billing(1); cost of the service; customer service/technical support; and
offerings and promotions.

"Customer expectations are continually rising when it comes to broadband
service-users want it to be faster, less expensive and constantly available
without interruption," said Stuart Crawford-Browne, director of service
industries research at J.D. Power and Associates. "However, properly setting
and managing customer expectations through transparent and clear
communications and customer service can go a long way in helping ISPs
differentiate themselves from the competition."

Among fixed broadband service customers, approximately 24 percent
indicate that the network speed they experience is slower than they expected.
Overall satisfaction among these customers averages 512 on a 1,000-point
scale, compared with an average of 652 among customers who indicate the
network speed meets their expectations. Among mobile broadband customers, 25
percent indicate they have experienced slower-than-expected network speed,
and satisfaction among these customers averages 503. In contrast, among
mobile broadband customers who indicate that the network speed meets their
expectations, satisfaction averages 638.

"It is particularly critical for ISPs to deliver on promised network
speeds, particularly when these expectations are being set by marketing and
advertising messaging," said Crawford-Browne. "Rather than advertising
maximum network speeds, providers can benefit from communicating the range of
speeds that customers can realistically expect to experience. Even though
connection speeds may be affected by location and customer computer and
software configurations, any perceived lag may be attributed to the service
provider, thus lowering satisfaction levels."

The study finds that offering loyalty incentives to broadband service
customers can be particularly effective in improving satisfaction by
elevating customer perceptions of value for the price paid. Among fixed
broadband customers, there is a 76-point gap in satisfaction between those
who indicate they received some kind of loyalty incentive (678, on average),
compared with customers who did not (602, on average). Among mobile broadband
customers, the gap averages 74 points (668 vs. 594, respectively).

There is ample opportunity for broadband ISPs to utilise loyalty
incentives to help improve satisfaction. Only 33 percent of mobile broadband
customers and 38 percent of fixed broadband customers report receiving some
type of loyalty incentive.

Fixed Broadband Internet Service Provider Rankings

Plusnet ranks highest among fixed broadband Internet service providers
with a score of 717 and performs particularly well in the performance and
reliability and cost of service factors. O2 (710) and Sky (663) follow
Plusnet in the rankings. O2 performs particularly well in the offerings and
promotions and billing and customer service factors.

Mobile Broadband Internet Service Provider Rankings

Among mobile broadband Internet service providers, O2 ranks highest for a
third consecutive year and achieves a score of 648. O2 performs particularly
well in the performance and reliability factor. Following O2 in the rankings
are Orange (629) and 3 (622).

While 39 percent of mobile broadband customers and 28 percent of fixed
broadband customers say they "probably would" or "definitely would" switch
Internet service providers within the next 12 months, undertaking efforts to
retain these customers can help providers experience a long-term lift in
satisfaction. The longer a broadband customer stays with their provider, the
higher their satisfaction, on average. Among fixed broadband customers who
have been with their provider for up to one year, satisfaction averages 615,
compared with an average of 641 among customers who have been with their
provider for more than two years. Among mobile broadband customers, the
difference in satisfaction averages 19 points (616 vs. 635, respectively.)

The 2011 UK Fixed Broadband ISP Customer Satisfaction Study, now in its
sixth year, is based on responses from 2,041 residential customers with fixed
line broadband services across the UK. The 2011 UK Mobile Broadband ISP
Customer Satisfaction Study, now in its third year, is based on responses
from 1,244 mobile broadband customers. Both studies were fielded between
February and March 2011.

(1) In the UK Mobile Broadband ISP Customer Satisfaction Study, this
factor is referred to as billing/topping up, to include pre-pay customers who
are replenishing credits for mobile broadband usage.

    2011 UK Fixed Broadband ISP Customer Satisfaction Study
    Customer Service Index Ranking        J.D. Power.com Power Circle Ratings
    (Based on a 1,000-point scale)        For Consumers
    Plusnet                       717                 5
    O2                            710                 5

    Sky                           663                 4

    Orange                        634                 3
    Virgin Media                  631                 3
    Industry Average              631                 3
    TalkTalk                      626                 3
    BT                            616                 3

    AOL                           570                 2

    Customer Satisfaction Component Weights - Fixed Broadband ISP Segment
    Reliability                                                  35%
    Cost of Service                                              20%
    Offerings and Promotions                                     18%
    Billing                                                      17%
    Customer Service/Technical Support                           10%

    2011 UK Mobile Broadband ISP Customer Satisfaction Study
    Customer Service Index Ranking        J.D. Power.com Power Circle Ratings
    (Based on a 1,000-point scale)        For Consumers
    O2                            648                 5

    Orange                        629                 4

    3                             622                 3
    Industry Average              619                 3

    T-Mobile                      608                 2

    Vodafone                      593                 2

    Customer Satisfaction Component Weights - Mobile Broadband ISP Segment
    Performance and Reliability                                  34%
    Cost of Service                                              24%
    Billing/Topping up                                           18%
    Offerings and Promotions                                     14%
    Customer Service/Technical Support                            9%

    Power Circle Ratings Legend:
    5 - Among the best
    4 - Better than most
    3 - About average
    2 - The rest

About J.D. Power and Associates

The European headquarters of J.D. Power and Associates is located in
Munich, Germany. With world headquarters in Westlake Village, California,
U.S.A., J.D. Power and Associates is a global marketing information services
company providing forecasting, performance improvement, social media and
customer satisfaction insights and solutions. The company'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 is a leading global financial
information and education company that helps professionals and students
succeed in the Knowledge Economy. Leading brands include Standard & Poor's,
McGraw-Hill Education, Platts energy information services and J.D. Power and
Associates. The Corporation has approximately 21,000 employees with more than
280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional
information is available at www.mcgraw-hill.com.

Media Relations Contacts:

Stuart Crawford-Browne, Guildford, Surrey; United Kingdom;
+44-1483-207610; stuart.crawford-browne@jdpa.com

John Tews; J.D. Power and Associates; Troy, Michigan USA;
+1-248-312-4119; media.relations@jdpa.com

No advertising or other promotional use can be made of the information in
this release without the express prior written consent of J.D. Power and
Associates. www.jdpower.com

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