JD Power: Advanced Tech Key to Biz Services

According to the J.D. Power 2016 U.S. Business Wireline Satisfaction Study, technology-advanced services such as fiber-optic Internet access, cloud computing, security solutions, Web hosting and videoconferencing applications generate additional monthly revenue for wireline business service providers and also increase customer satisfaction across all segments of business customers.

The annual study measures customer satisfaction with providers of telecommunication voice and data services in three segments: large enterprise businesses; small/medium businesses; and very small businesses. Satisfaction is measured in six factors (in order of importance): performance and reliability (27%); cost of service (18%); communications (15%); sales representatives and account executives (15%); billing (14%); and customer service (12%). Satisfaction is calculated on a 1,000-point scale.

Business service providers have become more aggressive in the marketplace by offering competitive pricing and service plans. This strategy helps providers differentiate themselves from the competition while offering additional value to existing customers and attracting new customers. As such, providers offering value-added services that improve technology capabilities for their business customers achieve higher overall satisfaction scores than do providers not offering such services.

For example, overall satisfaction among business customers who subscribe to videoconferencing applications is 816, which is 75 index points higher than the overall industry average score of 741. Offering security solutions to protect against corporate hacking (812) and cloud computing (794) are other advanced technology services that lead to higher overall satisfaction.

The services also generate additional revenue. Subscribing to advanced services increases the industry average company bill of $322 to $582 among subscribers to cloud computing services; to $766 among subscribers to security solutions; and to $792 among subscribers to videoconferencing applications.

"Similar to the residential telecom segment, competition is also fierce in the business segment," said Kirk Parsons, senior director and technology, media & telecom practice leader at J.D. Power. "It's imperative for telecom providers to make sure their existing customers have an excellent experience and to provide more value-added services that affect the bottom line, especially when it comes to business data services. It really boils down to a customer's perception of value in relation to the cost of the service. When business customers see the value, they are less likely to switch to another provider and more likely to remain loyal to the brand in the future."

In the large enterprise business segment, Verizon (NYSE:VZ) ranks highest with an overall score of 827. For a second consecutive year, AT&T (NYSE:T) ranks highest in the small/medium business segment, with a score of 803. Cox Communications ranks highest in the very small business segment with a score of 753.

Other findings indicate:

  • Overall customer satisfaction in 2016 averages 741, an improvement of 22 points from 2015.
  • The average monthly amount spent on data service has declined from 2015 in the small/medium business segment (-$147). This is counter to the general rise in dollars spent in the very small and large enterprise business segments (+$9 & +$390, respectively).
  • The top reason businesses chose their current telecom provider is network quality/network speed (35%). The core reasons for switching providers include obtaining better pricing (68%); better/more reliable service performance (28%); and favorable pricing options (24%).
  • The main reason businesses contact customer care is network-related: report an outage, service disruption/disconnected or poor/bad reception (26%). The next-highest contact reason is to inquire about a product or service (14%).

The 2016 U.S. Business Wireline Satisfaction Study is based on responses from 3,324 business customers of data and voice services at very small businesses (companies with between one and 19 employees, with a corporate service plan); small/medium businesses (companies with between 20 and 499 employees); and large enterprise businesses (companies with 500 or more employees) in the United States and includes evaluations of their data and voice service providers. The study was fielded in April and May 2016.

Get the Broadband Technology Report Newsletters Delivered to Your Inbox

Subscribe to email newsletters today at no cost and receive the latest information on:

  • Video Technology
  • Network Technology
  • Technology Alerts
  • BTR LATAM (Latin America)

SCTE-Cable Tec Expo 2016 Video Show Dailies

BTR's SCTE-Cable Tec Expo Video Show Daily, Day 3

BTR's SCTE-Cable Tec Expo Video Show Daily, Day 3

In our Video Show Daily for Day 3 of exhibits at SCTE Cable-Tec Expo in Philadelphia, BTR Editorial Director Stephen Hardy covers trends in distrib...

BTR's SCTE-Cable Tec Expo Video Show Daily, Day 2

BTR's SCTE-Cable Tec Expo Video Show Daily, Day 2

In our Video Show Daily for the second day of exhibits at SCTE Cable-Tec Expo in Philadelphia, BTR Editorial Director Stephen Hardy highlights furt...

BTR's SCTE-Cable Tec Expo Video Show Daily, Day 1

BTR's SCTE-Cable Tec Expo Video Show Daily, Day 1

BTR Editorial Director Stephen Hardy reviews the hot technologies and announcements from the first day of exhibits at SCTE Cable-Tec Expo 2016 in P...

Diamond Technology Reviews - 2016 High Scores

2016 Diamond Technology Reviews Slideshow

2016 Diamond Technology Reviews Slideshow

Diamond Technology Reviews 2016

Diamond Technology Reviews 2016

BTR's Diamond Technology Reviews, now in its twelfth year, is a technology recognition program wherein vendors serving the broadband cable ...

Related Articles


ANSI OKs 3 SCTE Standards

October 14, 2016

The American National Standards Institute has approved three SCTE s...


2016 SCTE Cable-Tec Expo Wrap Up

Whether you couldn't make it to Cable-Tec this year or want to see if you missed anything while you were there, you'll want to join BTR editors Stephen Hardy and Ron Hendrickson as they reveal their picks for the...

October 12, 2016
Sponsored by

Counting the cost: Efficiently transitioning from HFC to FTTH

HFC networks are uniquely positioned to provide compelling and competitive services, and are also uniquely positioned to transition to symmetrical FTTH as commercial requirements demand.  This webinar will d...

Date:September 22, 2016
Sponsored by

Maintaining High Quality of Experience in an Adaptive Bitrate System

This webinar will look at the many points in an ABR system where the video is touched.  From ingest (satellite, file, and IP), to egress, each point should be qualified for compliance to help maintain a high...

Date:August 25, 2016
Sponsored by

White Papers & Special Reports

Cable VoIP 2.0: Voice Moves to the Cloud

October 2016

Cable providers led the charge on the VoIP evolution and won customers and market share. Now voice networks are evolving again. The cloud voice platform has ...

Understanding Ultra High Definition Television

October 2016

Over the last 10 years, high definition television (HDTV) has been replacing standard definition television as the expected viewing format for television pro...

Are You Ready for DOCSIS 3.1? The Future of Cable Technology and How to Prepare Your Network

October 2016

DOCSIS 3.1 promises 10x capacity throughput and a range of technical benefits for cable providers and users alike. Are you ready? Discover the technical adva...

BTR Blogs

BTR Managing Editor Ron Hendrickson

FCC Rethinks Set-Top Plan

September 10, 2016

By Ron Hendrickson - The FCC has reworked the "unlock the set-top b...


In Memoriam: Richard Covell

August 18, 2016

By Rob Stuehrk, Publisher - We at Broadband Technology Report were sadde...

BTR Managing Editor Ron Hendrickson

Court Overturns FCC Municipal Broadband Order

August 11, 2016

By Ron Hendrickson - You win some, and you lose some, and the FCC just l...

Featured Hangouts

4K 4 U: How to Prepare for UltraHD Video

4K 4 U: How to Prepare for UltraHD Video

4K/UltraHD video is coming - consumers are buying the TV sets, and more content is becoming available. Watch this inf...

DOCSIS 3.1: A Look Ahead

DOCSIS 3.1: A Look Ahead

Watch a 30-minute video chat of experts from a variety of related disciplines discuss how close deployments really ar...

Featured Hangout

4K 4 U: How to Prepare for UltraHD Video

4K/UltraHD video is coming - consumers are buying the TV sets, and more content is becoming available. Watch this informative Hangout on demand by clicking the link above.

Sponsored by Verimatrix.