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The latest American Customer Satisfaction Index (ACSI) report has been released, examining how customers feel about various telecommunications providers. After two years of declining satisfaction, the sector has finally stabilized and stopped its slide.
T-Mobile emerges as a clear winner in this year’s index, outperforming the three largest competitors: AT&T, Sprint, and Verizon. Prepaid provider TracFone Wireless retains the top spot among wireless carriers but leads T-Mobile by just one point. T-Mobile scored 74 out of 100, a six percent improvement over last year. Sprint recorded the largest increase among major carriers, with an eight percent gain.
AT&T scored 71, improving one point from the previous year, while Verizon remained unchanged at 70. The gains posted by Sprint and T-Mobile lifted the average wireless provider satisfaction by 1.4 percent compared with last year.
Cable providers improved in customer satisfaction but remain among the lowest-scoring firms across industries. Comcast scored 62, tying with Suddenlink. Time Warner Cable tied with Cox Communications at 59. Mediacom ranked last among all companies measured by the ACSI, with a score of 54. At the industry level, subscription TV providers climbed 3.2 percent to reach an overall score of 65.
Charter Communications is set to complete the acquisition of Time Warner Cable and Bright House Networks—Bright House itself rose 2 percent to 66—which will make Charter the second-largest cable company in the United States and could have disruptive effects on the market.
“It’s not too hard for cable companies to improve when their starting point is the cellar,” says ACSI Managing Director David VanAmburg. “But for Charter Communications, its challenge will be to keep satisfaction levels from falling in the wake of a merger because ACSI data show that there tends to be a drop in customer satisfaction as companies combine operations and customer accounts.”
Internet service providers (ISPs) improved by 1.6 percent, reaching an ACSI score of 64, but they remain grouped with cable companies near the bottom of satisfaction rankings. “High-speed Internet access is a must-have in the digital age, making ISPs and wireless companies critical providers for the workplace as well as the home,” explains ACSI leadership. “With relatively few options, consumers have limited means for punishing companies for poor service.”
Among ISPs and related services, Verizon Fios climbed 7 percent to 73—the highest customer satisfaction score recorded for the industry. Cablevision Systems rose 13 percent to 69, taking second place. Bright House Networks improved 6 percent to 67, and Time Warner Cable jumped 14 percent to 66, both outperforming their future parent company Charter Communications, which scored 63 after an 11-percent increase. AT&T U-verse fell 7 percent to the industry average of 64, while Comcast added 5 percent to reach 59. Several other providers remain in the 50s.
What do you think of these latest customer satisfaction results? Share your thoughts in the comments.