Verizon Wireless Leads in Performance, But AT&T Takes Market Share

Customers have spoken, and Verizon Wireless (VZ) has the lowest percentage of dropped calls among all major U.S. service providers.

That's according to ChangeWave's latest cell phone survey of 2,883 U.S. consumers, completed September 18, 2008

Can You Hear Me Now?

Verizon subscribers report that - on average - just 2.7% of their calls were dropped over the past 90 days, nearly a percentage point better than AT&T (T) (3.6%), their closest competitor.

Sprint/Nextel (S) (4.4%) and T-Mobile (4.5%) were third and fourth respectively.

Importantly, one-in-five Verizon users (20%) say they didn't experience ANY dropped calls over the past three months, compared to 18% for T-Mobile, 17% for AT&T, and 10% for Sprint/Nextel.

In addition, 43% of Verizon's customers in the survey say they're Very Satisfied with Verizon's service. As the following chart shows, that's also the best in the industry.

So is there a downside for Verizon in the survey?

Yes, and it's a big one. AT&T is beating them in the most important measure of all - Market Share.

Among respondents likely to switch providers over the next 6 months, nearly a third (31%) say they're headed to AT&T, while just 19% say they'll choose Verizon.

The main reason for AT&T's advantage is pretty obvious: the Apple iPhone. Ever since the iPhone announcement in January 2007, AT&T has claimed a lead over Verizon in terms of future share.

So while Verizon is clearly the industry leader in customer satisfaction, they're faced with an uphill climb in terms of responding to the iPhone phenomenon.

Perhaps the new BlackBerry Storm will provide the market share jolt Verizon needs. For all of their network's great performance, they're still very much in need of a new killer phone.

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This article summarizes the results of a recent ChangeWave Alliance survey. The Alliance is a research network of 20,000 business, technology and medical professionals who spend their everyday lives working on the front line of technological change. For more info on ChangeWave, or to sign up for real-time alerts email on the hottest technologies and companies, click here.

Comments

[Kevin_S:]

The trend will continue - people will switch to AT&T for 3G iPhones. And by the end of 2009, AT&T profit will explode (think of 20M iPhones under AT&T).

2008 Oct 22 08:05 AM

[RK:]

The emphasis on dropped call metrics seems odd. I have owned mobile phones since 1994. I really don't think about dropped calls much any more. Perhaps CDMA technology is to blame. Is it possible that there are fewer phones available for CDMA? I travel internationally; there is no way I would buy a CDMA phone as I would not be able to use simm cards in other countries.

2008 Oct 22 09:24 AM

[bermudamartin:]

The projections will change dramatically as the economy slumps. Consumers are becoming increasingly more price sensitive. Everyone is be looking for a "deal". Fewer consumers will opt for premium devices or premium services. Consumers will sacrifice quality to save $5 -$10 a month.
That's precisely why dollar stores are rising in the retail sector right now.

2008 Oct 22 12:23 PM

[Nextel Acce...:]

Sprint & T-Mobile have the best value, look for growth there. Verizon is way too expensive and very inflexible. AT&T coverage is horrible.

2008 Oct 24 05:38 PM

[elkaos:]

Verizon:

Unlimited Data Plan: $44.99 + $2.99 (Visual Voice-mail) + $14.99 (VCast Music w/ Rhapsody) = $62.97

Cheapest Voice plan: $39.99
Verizon Surcharges (NOT TAXES): 11.03% of total bill + 87 cents (administrative charges) + Taxes. = $115.16 + Taxes = ~roughly $145.

Verizon tries to nickel and dime its customers for everything. They have good customer service, but they're also picking your pocket.

AT&T:
Unlimited Data Plan: $30 (Includes visual v.mail, streaming music (free pandora/aol radio apps on iphone).

Minimum Voice Plan: $39.99

Total: $69.99+taxes: ~roughly $90 total after taxes.

I've had both verizon and att. verizon customer service is amazing, but you're paying a hefty price for it - verizon surcharges are bogus and their store representatives will swear that they are taxes - which they are not as stated in the contract itself. It clearly states that they are Verizon Surcharges!

att service is a nighmare, but i'd rather save $50/month than have good customer service.

Coverage is both the same for verizon and att. Having a smart phone increases signal strength on both carriers.

Winner: ATT because it's cheaper and has the same coverage as verizon.

If money is not an object, then go for Verizon - which also forces you to pay one bill in advance. I.e. if your first bill is supposed to be $150, you will pay $300 on your first bill. You will not get your $150 back when you switch carriers - beware, I have gone through this transition - they are very good at deceiving their customers.

2008 Dec 26 12:12 AM

[Mary Maralee:]

Have had Verizon for several years now. Service is pretty good, although have little if no service at ALL the supermarkets as well as my health club. U-hum!

Am giving thought to switching to AT&T primarily because of their phones. LOVE the Blackberry Bold...

Jun 04 11:52 PM