Can they hear us now?
Consumer Reports ranks best, worst wireless companies
By Kristen Gerencher, CBS.MarketWatch.com
Last Update: 5:00 AM ET Jan. 7, 2003
marketwatch.com
SAN FRANCISCO (CBS.MW) - Cell-phone companies have a long way to go to improve their standing with customers, a third of whom are searching for a better deal, according to a new survey.
One in three cell-phone users said they're seriously considering changing wireless carriers, according to a survey of 22,000 Consumer Reports subscribers, published in its February 2003 edition.
Unclear billing practices, hefty early termination fees and unreliable service and 911 connections are creating many unhappy customers, Consumers Union President James Guest said.
"The cell-phone industry is great on gee-whiz gadgets and gizmos, but it's failing on the nuts and bolts of basic service that consumers need and depend on," he said.
Indeed, many readers complained of persistent problems, with 14 percent saying their calls were dropped, 11 percent unable to hear the other party clearly and 10 percent unable to get service.
Verizon rated tops
Consumer Reports surveyed customer contentment in six local markets -- Chicago, Dallas, Los Angeles, New York, San Francisco and Washington D.C. -- and found Verizon Wireless (VZ: news, chart, profile) (VOD: news, chart, profile) scored highest in each area when measured by call quality, interruptions and access.
AT&T Wireless (AWE: news, chart, profile) came in second in the West coast cities, Dallas and New York, with Sprint PCS (PCS: news, chart, profile), Cingular (BLS: news, chart, profile) (SBC: news, chart, profile), Nextel (NXTL: news, chart, profile) and T-Mobile alternating in the regions' remaining rankings.
While some wireless-service providers enjoyed high marks, most are wallowing in low customer esteem, Guest said. "The overall satisfaction with cell-phone carriers, including Verizon, is lower than for most other businesses and services that we rate at Consumer Reports."
What's more, consumers who purchase cell phones for security in an emergency often are shortchanged, he said. In a separate survey of its Web site subscribers, Consumer Reports found that 15 percent of nearly 1,900 people who tried to call 911 from a cell phone in the previous year said they had trouble connecting. Four percent reported never getting through at all.
Nine of 21 test calls failed to connect with emergency dispatchers even though a strong signal was available from a competitor, Consumers Union Senior Vice-President for Technical Policy R. David Pittle said.
Those who buy phones with the ability to switch between analog and digital often find more reliable 911 service, he said. "Phones that work in both of these modes offer you more chances to get through in an emergency."
Spelling it out
One reason consumers become disenchanted with their cell-phone company is that calling plan features are difficult to decipher and remember, the magazine found. For instance, plans vary in how they define and charge for use of peak vs. off-peak minutes, roaming, directory assistance, and long distance and overtime minutes.
Consumer Reports recommended that wireless companies illustrate their fee schedules in a uniform billing box similar to the standardized format credit card companies now are required to display to clarify their rates.
"The chart we're proposing is not radical," Guest said. "Imagine how much easier shopping for a cell phone plan would be if they all provided the same easy to read, easy to see format."
Guest said consumers need to follow three basic tips when shopping for a plan: Select a carrier and plan before choosing a phone, ask friends and co-workers if their carrier effectively covers their area and make sure the plan suits their calling needs.
Kristen Gerencher is a reporter for CBS.MarketWatch.com in San Francisco. |
