The study found that overall satisfaction among prepaid wireless customers that subscribe to flat-rate pricing plans with unlimited minutes measures as 764 on a 1,000 point scale, which is dramatically higher than that of subscribers of traditional per-minute pricing plans (717, on average). This interstice in satisfaction levels is primarily caused by differences in the cost of service, as well as by the benefit of unlimited minutes available in flat-rate plans. Increasingly, unlimited plan customers are reporting higher satisfaction levels with the amount of airtime minutes offered for the price paid, the overall cost-per-minute charges, and the cost per transaction to refill their account with minutes.
"Prepaid customers are clearly responding favorably to these unique service plan options, as they provide a cost-effective alternative to traditional price-per-minute plans that are typically offered and allow customers freedom from worrying about being charged extra fees for making too many calls within a given time period," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "Although plans with unlimited minutes typically have geographic restrictions for placing and receiving wireless calls, they still fulfill customer expectations and tend to meet a specific service need better than other wireless plans. In fact, 46% of unlimited plan customers have completely replaced their traditional landline phone with wireless service, compared with only 13% of traditional pay-as-you-go customers."
According to the results of the study, satisfaction ratings for the initial activation process also differ greatly between customers that subscribe to flat-rate prepaid plans with unlimited minutes and subscribers of traditional, per-minute plans. Specifically, customer satisfaction scores with plans that have unlimited minutes average 862, contrasted with only 756 among traditional prepaid calling plans. The ease of both initially subscribing to the plan and activating the phone are two substantial areas creating the gap in satisfaction.
MetroPCS scores the highest in prepaid wireless satisfaction for the first time since the inception of the study and performs particularly well in five out of seven factors that drive overall satisfaction: cost of service, account management, initial activation, brand image, and service plan options. MetroPCS Communications Inc. (formerly General Wireless Inc.) was launched in 2002 and is a provider of CDMA wireless communications services in the greater Miami, Tampa, Sarasota, Fort Myers, Atlanta, San Francisco, Los Angeles, Las Vegas, Daytona, Dallas, Detroit, Orlando, Philadelphia and Sacramento metropolitan areas. It is the seventh largest wireless telecommunications network in the United States. As of the end of the first quarter of 2008, MetroPCS served a total of over 4.4 million subscribers. Also ranking above the industry are TracFone, Cricket, Virgin Mobile, and T-Mobile To Go.
"In particular, MetroPCS differentiates itself from the competition in areas related to the cost of service, account management, and service functions," said Parsons. "From initial account setup and activation to account management tools and variety of pricing plans available, MetroPCS provides its customers with important elements that positively impact their daily service experiences."
The study also finds the following key prepaid wireless usage patterns:
- Prepaid users spend $40 on average when purchasing additional airtime — an increase of $2 from 2007. In comparison, the average monthly service cost for postpaid customers in 2008 is $76.
- Prepaid customers report using 233 minutes per month. Conversely, postpaid customers average 543 minutes per month.
- Approximately 63% of prepaid phones that are prepackaged with minutes are purchased from retail stores, while an additional 20% of customers report purchasing a prepackaged phone via the Internet. Approximately 17% of customers purchase activated minute cards separately from their cell phones.
- 26% of prepaid customers refill minutes approximately once per month, marking a decrease from 29% in 2007. An additional 14% refill their plan minutes at least twice a month.
