Subject: [NEXTEL-1] Handset Upgrades-

From: Marcel <[email-masked]>
Date: Thu, 24 Oct 2002 16:10:38 -0400

http://cnniw.yellowbrix.com/pages/cnniw/Story.nsp?story_id=33849123&ID=cnniw&scategory=Telecommunications%3AWireless&

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J.D. Power and Associates Reports: Owners of Wireless Mobile Phones Keep Handsets Longer Before Upgrading Despite More Affordable Pricing

Source: Business Wire

Publication date: 2002-10-24

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Oct. 24, 2002--

Sanyo Ranks Highest in Overall Wireless Mobile Phone Satisfaction

Despite the continuing decline in the average price of a wireless
mobile phone, wireless subscribers are waiting longer to replace their
current mobile phones, according to the J.D. Power and Associates 2002
U.S. Wireless Mobile Phone Evaluation Study(SM) released today.

The study finds that, on average, the typical subscriber owns a
wireless phone model for 18 months, compared to 16 months in 2000. At
the same time, the average price a customer pays for their wireless
mobile phone has dropped from an average of $100 in 1999 to $75 in
2002. A major reason for this decline is that handset providers and
wireless service carriers are discounting the phone more often to
drive sales. The number of customers who report receiving a free
wireless mobile phone when they first subscribe to wireless service
has increased dramatically -- from 18 percent in 2000 to 28 percent in
2002.

"It's clear that wireless service carriers are using mobile phones
as an enticement to increase consumer traffic by applying discounts
either through rebates or free limited-time offers," said Kirk
Parsons, senior director of wireless services at J.D. Power and
Associates. "The problem with this strategy is that in most cases, the
handsets being offered for discount are older models, which typically
do not have the latest technological advancements or design features."

The study finds that customer satisfaction with premium-priced
wireless mobile phones is significantly higher than lower-priced
models. The premium-priced segment, which typically starts above the
$150 range, includes many of the features and cutting-edge technology
subscribers are looking for, such as color displays and multimedia
messaging capabilities.

The five major areas driving satisfaction with wireless mobile
phones (in order of importance) are: physical design, features,
operation, battery function and durability. Exceeding customer
expectations in these areas substantially raises the possibility that
subscribers will buy the same brand the next time they are in the
market to replace or upgrade their wireless mobile phones.

One example of a handset manufacturer that exceeds customer
expectations is Sanyo. Sanyo ranks highest in overall customer
satisfaction with wireless mobile phones, consistently performing
above the industry average in all five areas.

"Sanyo offers wireless mobile phones that include a desirable
combination of design style, ease of use and functionality, which
customers truly enjoy and appreciate," said Parsons.

Following Sanyo in the rankings are Motorola and Samsung in a tie,
and Kyocera, respectively.

The 2002 U.S. Wireless Mobile Phone Evaluation Study measures
customer satisfaction in 27 of the largest U.S. markets with the top
seven wireless mobile handset providers based on responses from 5,259
households.

Headquartered in Westlake Village, Calif., J.D. Power and
Associates is a global marketing information services firm operating
in key business sectors including market research, forecasting,
consulting, training and customer satisfaction. The firm's quality and
satisfaction measurements are based on responses from millions of
consumers annually. Media e-mail contact: [email-masked] or
[email-masked].

No advertising or other promotional use can be made of the
information in this release without the express prior written consent
of J.D. Power and Associates. www.jdpa.com.

Note: Two charts are available at URL:
http://www.newstream.com/uk/public_story.html?7514

Publication date: 2002-10-24

© 2002, YellowBrix, Inc.

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