J.D. Power and Associates Reports: Rewarding Customers for Ongoing Loyalty Elevates Customer Satisfaction With Fixed and Mobile Broadband ISPs in the UK

For a Second Consecutive Year, O2 Ranks Highest in Customer Satisfaction among Both UK Fixed and Mobile Broadband Internet Service Providers

LONDON, March 31, 2010 - Offering loyalty incentives, such as discounts on monthly fees, service
upgrades and exclusive benefits, provides a considerable lift in customer
satisfaction with fixed and mobile broadband Internet service providers
(ISPs) in the UK, according to the J.D. Power and Associates 2010 UK Fixed
Broadband ISP Customer Satisfaction Study(SM) and the J.D. Power and
Associates 2010 UK Mobile Broadband ISP Customer Satisfaction Study(SM), both
released today.

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Approximately 15 percent of fixed broadband customers and 16 percent of
mobile broadband customers indicate having received incentives from their ISP
to reward their ongoing loyalty. Among these fixed and mobile broadband
customers, satisfaction averages more than 100 points higher than among
customers who don't receive loyalty incentives. Among fixed broadband
customers, the difference is an average of 102 points on a 1,000-point scale
(737 vs. 635, respectively) while the gap averages 107 points among mobile
broadband customers (701 vs. 594, respectively).

"While many Internet service providers offer discounts and rewards when
customers initially sign up for or bundle services, incentives for ongoing
loyalty have the greatest positive impact on overall satisfaction," said
Stuart Crawford-Browne, senior manager of service industries research at J.D.
Power and Associates. "Loyalty rewards provide an important and impactful
opportunity for ISPs to differentiate themselves, particularly in the
increasingly competitive market landscape in which rewards are becoming an
expectation among customers."

The study also finds that providing high levels of satisfaction with
Internet service has a strong positive impact on recommendation rates. Among
mobile broadband customers with the highest levels of satisfaction (averaging
between 800 and 1,000) with their service provider, 67 percent indicate they
"definitely will" recommend their current provider. This figure averages 64
percent among highly satisfied fixed broadband customers. In contrast, among
the least-satisfied customers (with satisfaction averaging 700 or lower),
only 8 percent of mobile broadband customers and 9 percent of fixed broadband
customers would "definitely recommend" their ISP.

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.

Fixed Broadband Internet Service Provider Rankings

O2 ranks highest among fixed broadband Internet service providers for a
second consecutive year, achieving a score of 766 and performing particularly
well in all five factors driving satisfaction. Plusnet (703) and Sky (676)
follow O2 in the rankings.

Mobile Broadband Internet Service Provider Rankings

Among mobile broadband Internet service providers, O2 ranks highest with
a score of 653. O2 performs particularly well in two factors: customer
service/technical support and offerings and promotions. Orange closely
follows O2 in the rankings with a score of 650, while T-Mobile ranks third
with a score of 644.

Other Industry Findings

The study finds that, for both fixed and mobile broadband subscribers,
performance and reliability carries the greatest importance among the factors
examined in the study. As network traffic and data transfer requirements
increase, many customers, particularly those with mobile broadband service,
express a degree of frustration with network speed and reliability.

"To keep customers satisfied, ISPs will need to focus on investing in
infrastructure in the coming years," said Crawford-Browne. "Building networks
with the ability to handle fast data transfer speeds will be important not
only to customers, but also to businesses and, by extension, the economy as a
whole."

The 2010 UK Fixed Broadband ISP Customer Satisfaction Study, now in its
fifth year, is based on responses from 2,048 residential customers with fixed
line broadband services across the UK. The 2010 UK Mobile Broadband ISP
Customer Satisfaction Study, now in its second year, is based on responses
from 1,274 mobile broadband customers. Both studies were fielded in February
2010.

(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.

      Customer Satisfaction Index Scores
      Fixed Broadband ISP Segment

      (Based on a 1,000-point scale)                        For Consumers

      O2                                         766                    5

      Plusnet                                    703                    4

      Sky                                        676                    3
      Talk Talk                                  669                    3
      Virgin Media                               668                    3
      Industry Average                           666                    3
      BT                                         658                    3
      Orange                                     641                    3

      AOL                                        627                    2

      Customer Satisfaction Component Weights - Fixed Broadband
       ISP Segment
      Performance and reliability                 42%
      Billing                                     17%
      Cost of the service                         16%
      Customer service/technical support          14%
      Offerings and promotions                    11%

      Customer Satisfaction Index Scores
      Mobile Broadband ISP Segment

      (Based on a 1,000-point scale)                        For Consumers

      O2                                         653                    5
      Orange                                     650                    5

      T-Mobile                                   644                    4

      Vodafone                                   627                    3
      Industry Average                           624                    3

      3                                          603                    2

      Customer Satisfaction Component Weights - Mobile Broadband
       ISP Segment
      Performance and reliability                 49%
      Cost of the service                         17%
      Billing/Topping up                          15%
      Offerings and promotions                     9%
      Customer service/Technical support           9%

      Note: Percentages may not total 100 due to rounding.

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

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement, Web
intelligence and customer satisfaction. The company's quality and
satisfaction measurements are based on responses from millions of consumers
annually. For more information on car reviews and ratings, car insurance,
health insurance, cell phone ratings, and more, please visit JDPower.com.
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
information services company meeting worldwide needs in the financial
services, education and business information markets through leading brands
such as Standard & Poor's, McGraw-Hill Education, Platts, Capital IQ, J.D.
Power and Associates, McGraw-Hill Construction and Aviation Week. The
Corporation has more than 280 offices in 40 countries. Sales in 2009 were
US$5.95 billion. Additional information is available at
www.mcgraw-hill.com/.

Media Relations Contacts:

Ian Giles, Guildford, Surrey; England; +44-1483-207613;
ian.giles@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/corporate

Ian Giles, Guildford, Surrey, England, +44-1483-207613, ian.giles at jdpa.com; or John Tews, Troy, Michigan USA, +1-248-312-4119, media.relations at jdpa.com, both of J.D. Power and Associates