Wholesale VoIP Feature Article

September 12, 2006

Study: Customer Satisfaction with VoIP Higher than Traditional and Mobile Services

By Susan J. Campbell, TMCnet Contributing Editor

Level 3 Communications has completed its third Voice over Internet Protocol (VoIP) consumer research study. The results indicate that VoIP adoption is accelerating and that those who have already made the switch to VoIP are reporting that they are extremely satisfied with the service.

As the third phase of an ongoing program to track consumer adoption of VoIP, Level 3 partnered with Harris Interactive (News - Alert) to complete the study. This wave follows a 2005 study which revealed that US consumers were open to adopting VoIP.

According to Cynthia Carpenter, vice president of marketing for Level 3, the results of this study are a continuation of the company’s investment in understanding its customer’s customer. By gaining perspective on VoIP satisfaction drivers, Level 3 is well-positioned to provide data-driven direction in retention and loyalty programs as well as how to position, price and promote VoIP services.

Based on the Level 3 study, consumer awareness of VoIP is strong, with 67 percent of respondents reporting that they are aware of VoIP and 55 percent acknowledging that they are familiar with the service. Historical growth is shown in the study to be solid in the VoIP market and with good growth potential.

Carpenter went on the add that Level 3 research results suggest that the next wave of adopters will be driven not only by price, but also by features. The notion of using VoIP as a back-up to their cell phone also presented an attractive lure.

VoIP adoption can be explained by way of four essential arguments. In order of importance, these arguments, according to the study, are as follows:

Price and predictability of the bill
Perceived convenience to switch
The option to exit a relationship with the phone company
Attractive features and new technology

Satisfaction levels are very high for consumers who already subscribe to VoIP. In fact, the study reveals that 86 percent of VoIP customers are very satisfied with their service, compared to 74 percent satisfaction among traditional landline customers and 66 percent satisfaction among wireless customers. Of the consumers already using VoIP, 76 percent indicated that they are not at all likely to return to traditional phone service.

Carpenter noted that one of the most important findings from this latest wave of research is that VoIP is a very sticky application. Level 3 found that most consumers who have made the switch to VoIP simply will not go back to traditional land line service.

This study from Level 3 corresponds with findings from a Minacom study that indicated VoIP call quality is steadily increasing. This study also suggested that quality will only get better over time and will likely produce higher percentages in satisfied customers.

As VoIP offers substantial advantages for both business and residential consumers, the advances in call quality and increasingly satisfied customers will only help to drive continued growth in this industry.

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What’s the number one VoIP conference in terms of attendance? What’s the leading VoIP expo for exhibitors in terms of lead generation? And which VoIP industry event will feature special attractions for service providers, resellers, and the enterprise and SMB market as well as an overview on the Future of IP Telephony? Answer: INTERNET TELEPHONY Conference & Expo, WEST, which runs October 10-13, 2006. See you in San Diego!

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Susan J. Campbell is a contributing editor for TMC and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.