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Home - More people own phones, more people unhappy with service: Cingular, Verizon, Sprint own 7 of 10 customers
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More people own phones, more people unhappy with service: Cingular, Verizon, Sprint own 7 of 10 customers

by RCR Wireless News April 14, 2005
written by RCR Wireless News April 14, 2005 Share
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The number of households that use mobile phones is increasing, but levels of customer satisfaction are on the decline, according to new research from Forrester Research Inc.

Two-thirds of U.S. households have at least one mobile phone, according to the survey, which polled 5,600 households. The report, “US Mobile Growth Defies Conventional Wisdom,” found that most households have more than one phone, and households with four or more mobile phones grew by 57 percent during the past year.

“The wireless market continues to defy predictions that it is approaching its saturation point,” said Charles S. Golvin, Forrester Research principal analyst. “But while consumers keep buying, they are far from ecstatic with their mobile providers. Despite carriers’ focus on improving their networks and customer service, customer satisfaction has declined over the past three years and hovers around 50 percent in key categories like customer service and call dependability.”

The report also said following consolidation, the top three mobile carriers will own seven out of 10 mobile households. Cingular will have 28 percent. Verizon will have 27 percent. And Sprint/Nextel will have 15 percent.

Price, battery life and ease of use continue to drive customers’ purchasing decisions, while less than 10 percent of subscribers rated camera phones as important to their purchase decisions. However, data functions are becoming more important, with 29 percent of consumers saying data capability plays into their buying decisions.

Finally, the report found 18- to 24-year-olds are the most likely age group to own mobile phones, and less than half of people who are 65 years or older own mobile phones.

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