FiOS Beats the Competition Again

Implications: FiOS concentration on customer satisfaction is translating into very low churn.     FiOS TV is top in customer satisfaction with DirecTV second, Dish Network third, Comcast tied with AT&T U-verse in fourth place, followed by Cox, Cablevision, Time Warner, and Charter.

Analysis:  

FiOS TV beat all its competition in the September 12, 2007 customer satisfaction survey conducted by ChangeWave Research. The study measured the responses of 1,586 consumers and counted the number of people who are either very satisfied or somewhat satisfied with their current TV provider. Adding these two responses together, FiOS TV scored 96%!  DirecTV was second with 89% and Dish Network came in third with 82%. Comcast tied with AT&T U-verse in fourth place with 73%, followed by Cox with 72%, Cablevision with 70%, Time Warner with 68% and Charter with 56%. This survey also revealed that 13% of subscribers are considering changing their TV service provider, with nearly half of those planning to switch to fiber-optic service.

In another survey FIOS overwhelmed all of its broadband access competition, getting 96% “excellent” or “good” rating. In this survey, ComputerWorld poled 1,163 of its readers. Of the whole broadband industry 79% of the respondents rated their overall broadband service excellent or good, 73% were satisfied with download speeds and 59% rate their upload speeds “excellent” or “good.”

Verizon’s FiOS has received top scores from a number of important surveys in recent months, including the American Customer Satisfaction Index and PC World. These results show the importance to delivering a great customer experience in a very competitive marketplace. Furthermore, these efforts have resulted in FiOS TV churn (approximately 1.5% per month) to be better than half of the Cable TV average (3% per month).