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Carrier Switching Bulletin

This month we examine customer satisfaction with specific carriers and the likelihood of customers switching their carriers.

Sprint and Nextel customers were the most likely to say they would switch carriers in the next three months; Verizon customers were the least likely to say they would switch within that time period.

About 25 percent of T-Mobile, Nextel, and Alltel customers reported they had either no contract or three months or less remaining on their contracts. The high levels of contracts with three months or less remaining in the All Other Carriers segment is driven by pre-paid accounts.

Verizon customers were the most satisfied with their carrier while Sprint and Nextel customers were the least satisfied. Overall, as customers approached the end of their contracts, their satisfaction with the carrier decreased. The exception to this was Sprint customers, whose satisfaction increased slightly toward the end of their contracts.

Among customers who reported they were not satisfied with their carriers, T-Mobile customers were the mostly likely to say they would act on their dissatisfaction and switch to a different carrier.

Verizon is the least likely to lose customers when examining contract length, likelihood to switch carriers, and satisfaction. Sprint, T-Mobile, and Nextel are more vulnerable to losing customers to other carriers. While T-Mobile did not have as many customers responding that they were likely to switch their carriers, T-Mobile’s least satisfied customers were more willing to leave when compared to other carriers’ least satisfied customers.

As the cell phone industry matures, it is crucial for carriers to work to attract prospects from other carriers and retain their own customers. NPD’s Carrier Switching Report looks closely at vulnerable consumers. The report highlights consumers who have three months or less remaining on their contracts or no contract, who told NPD they are likely to switch carriers in the next three months.

The report segments the top four U.S. carriers and profiles each carrier’s vulnerable and prospective customers to help carriers understand these customers and their behaviors. It’s the essential information carriers need to maintain their current subscribers and grow by attracting their competitors’ customers.

To learn more about the Carrier Switching Report or other NPD information and insights for the wireless industry, contact Charlie Camaroto at 866-444-1411 (contactnpd@npd.com).