J.D. Power and Associates Reports: Rewards and Incentives Are a Key Differentiator and Driver of Satisfaction With Mobile Phone Service Providers in the UK

Tesco Mobile Ranks Highest in Customer Satisfaction with Pre-Pay Mobile Phones in the UK;

LONDON, May 28, 2010 - Providing a diverse array of customer loyalty rewards and incentives has
a positive impact on overall satisfaction and customer advocacy with mobile
phone service providers in the UK, according to the J.D. Power and Associates
2010 UK Mobile Phone Customer Satisfaction Study(SM) released today.

(Logo: www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)

Now in its 13th year, the study measures customer satisfaction with
pre-pay and pay monthly plans among the leading UK mobile network service
providers. Overall satisfaction with providers is based on performance across
six factors: call quality/coverage; offerings and promotions; cost of the
service; billing or topping up; customer service; and handset.

The study finds that usefulness of incentives and rewards offered is the
most important aspect of the offerings and promotions factor, but it is the
least satisfying to both pre-pay and pay monthly customers. This provides a
key opportunity for service providers to differentiate themselves, as well as
elevate overall satisfaction and advocacy rates.

     Effect of Incentives and Rewards on Overall Satisfaction and Advocacy

                       Pre-Pay Customers           Pay Monthly Customers
                       -----------------           ---------------------
                                  Who Do Not                     Who Do Not
                   Who Receive     Receive        Who Receive      Receive
                    Incentives    Incentives    Incentives and   Incentives
                   and Rewards   and Rewards        Rewards     and Rewards
                  ------------   -----------   ---------------  -----------
    Overall Customer
     Satisfaction
     (on a 1,000-point
     scale)               717           641           688           629
    ---------------       ---           ---           ---           ---
    Percent Who Say
     They "Definitely
     Will" Recommend
     Their Provider        33%           10%           26%           19%
    ---------------       ---           ---           ---           ---

"As the mobile phone service sector matures, loyalty incentives and
rewards associated with topping up or monthly bill payment are key for
demonstrating value to customers," said Stuart Crawford-Browne, senior
manager of service industries at J.D. Power and Associates. "Providing a wide
array of incentives and allowing customers some degree of choice regarding
which incentives they will receive may go a long way in fostering engagement
with the brand, positive word of mouth and increased satisfaction."

The study finds that call quality/coverage is the leading driver of
satisfaction with mobile providers for both pre-pay and pay monthly
customers. This is a particularly challenging area for providers, as
increasing volumes of traffic place stress on the network infrastructures.
While satisfaction with call quality and coverage has declined only slightly
from 2009, compared with 2010, one in four pre-pay customers and one in three
pay monthly customers report experiencing a delay in the delivery or receipt
of text messages within the past 12 months.

Pre-Pay Mobile Phone Provider Rankings

Among pre-pay providers, Tesco Mobile ranks highest with a score of 728
on a 1,000-point scale and demonstrates strong performance in all six
factors. O2 (721) and 3 (696) follow Tesco Mobile in the rankings. In
third-place, 3 improves notably in 2010, moving up from seventh place in
2009.

Pay Monthly Mobile Phone Provider Rankings

Virgin Mobile ranks highest in the monthly payment plan segment for a
fourth consecutive year, receiving a score of 692 and performing particularly
well in four of six factors: billing, cost of the service; offerings and
promotions; and customer service. Following Virgin Mobile in the segment
rankings are O2 (683) and Orange (677).

The study results also include the following key findings:

    - Satisfaction with customer service has increased among
      pre-pay customers by 20 points from 2009, while customer service
      satisfaction among pay monthly customers has increased by 9 points in
      2010. Pre-pay call resolution at first contact is up from 75 percent in
      2009 to 80 percent in 2010 and remains unchanged from 2009 for pay
      monthly customers.
    - Pay monthly customers who receive itemised bills are more
      satisfied with their provider, on average, than customers whose bills
      are not itemised, but satisfaction is adversely affected when customers
      have to pay for this added service.

The 2010 UK Mobile Phone Customer Satisfaction Study is based on
responses from more than 3,300 pre-pay and pay monthly mobile phone customers
throughout the UK. The study was fielded in March and April 2010.

                                                       J.D. Power.com Power
    Customer Satisfaction Index Scores                 Circle Ratings
    Pre-Pay Segment
    (Based on a 1,000-point scale)                       For Consumers

    Tesco Mobile                             728          5

    O2                                       721          4
    3                                        696          4

    Pre-Pay Segment Average                  689          3
    Virgin Mobile                            682          3

    Vodafone                                 675          2
    T-Mobile                                 673          2
    Orange                                   670          2

    Customer Satisfaction Component Weights-Pre-Pay Segment
    Call Quality/Coverage                     34%
    Offerings and Promotions                  19%
    Topping Up                                17%
    Cost of the Service                       16%
    Handset                                   10%
    Customer Service                           5%
    Note: Percentages may not total 100 due to
     rounding.

                                                          J.D. Power.com Power
    Customer Satisfaction Index Scores                    Circle Ratings
    Pay Monthly Segment
    (Based on a 1,000-point scale)                       For Consumers

    Virgin Mobile                            692            5

    O2                                       683            4

    Orange                                   677
    Pay Monthly Segment Average              673
    T-Mobile                                 671
    Vodafone                                 671            3

    3                                        640            2

    Customer Satisfaction Component Weights-Pay Monthly Segment
    Call Quality/Coverage                     29%
    Offerings and Promotions                  21%
    Topping Up                                16%
    Cost of the Service                       15%
    Handset                                   10%
    Customer Service                           8%
    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

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 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. 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 (NYSE: MHP) is a global
information and education company providing knowledge, insights and analysis
in the financial, education and business information sectors through leading
brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D.
Power and Associates. 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/.

J.D. Power and Associates Media Relations Contacts:

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

Ian Giles, Guildford, Surrey; UK; +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

Guildford, Surrey; UK, Stuart Crawford-Browne, +44-1483-207610; stuart.crawford-browne at jdpa.com, or Ian Giles, +44-1483-207613; ian.giles at jdpa.com, or Troy, Michigan USA, John Tews, +1-248-312-4119; media.relations at jdpa.com, all of J.D. Power and Associates