During October and early November, 2003, MyRatePlan polled 1,478 visitors to its Number Portability Information Center
(www.myrateplan.com/wnp) to better understand how consumers will react to the
number portability rules implemented on November 24, 2003. Here are the final results
Do you plan to switch?
| Answer |
Response |
| Yes, ASAP | 65.3% |
| Yes, When Contract is Up | 18.2% |
| No, I am Happy | 13.6% |
| Undecided | 2.8% |
Comments:
Over 83% of respondents indicated they will switch. This is much, much higher than will actually switch, and
likely is indicative of the fact that visitors to MyRatePlan are likely more interested in than the average population
in learning about portability. However, this bias gives us a very good sample to work with for those who have indicated they
will switch.
=== The following are all based on the universe of people who answered Yes to the above question ===
Why are you switching?
| Answer |
Response |
| Coverage | 41.6% |
| Price | 28.2% |
| Customer Service | 15.0% |
| Other | 15.2% |
Comments:
Not surprisingly, coverage is the most popular reason for switching, but price was a strong second. This
indicates that while all carriers have fairly similar pricing, carriers have not done a good job communicating
that value to their current base of customers. Alternately, it may mean that while prices have been falling
rapidly, carriers haven't proactively passed through those lower prices to their existing base, except perhaps
for those who call in to request a change.
Who will be your new carrier?
| Carrier |
Response |
| AT&T Wireless | 8.2% |
| Cingular Wireless | 6.1% |
| Nextel | 6.7% |
| Sprint PCS | 5.6% |
| T-Mobile | 12.4% |
| Verizon Wireless | 26.7% |
| Other Carrier | 2.5% |
| Undecided | 31.8% |
Comments:
Verizon Wireless is the clear leader among respondents who have decided on a new carrier. This is may help
explain why Verizon was the first major carrier to come out in favor of portability earlier this summer. It may
also indicate the effectiveness of the ubiquitous "Can You Hear Me Now?" ads that tout the carrier's strong coverage area.
T-Mobile was second, most likely due to market awareness of their aggressive pricing. About 1/3 of users remain undecided.
These respondents may be awaiting the best offer to come their way after 11/24, or perhaps they are less positive about
the desire to switch.
Who is your current carrier?
| Carrier |
Current Carrier |
2Q Market Share* |
Difference |
| AT&T Wireless | 29.2% | 15.1% | -14.1% |
| Cingular Wireless | 12.2% | 15.9% | 3.7% |
| Nextel | 4.5% | 8.2% | 3.7% |
| Sprint PCS | 27.6% | 10.7% | -16.9% |
| T-Mobile | 11.1% | 8.0% | -3.1% |
| Verizon Wireless | 9.5% | 24.3% | 14.8% |
| Other Carrier | 5.9% | 17.8% | 11.9% |
| *Source: Wall Street Journal Article 10/8/03 |
Comments:
By asking respondents who their current carrier is, this question indirectly gauges whether a carrier will gain or lose
market share after number portability. The results compare the percentage of respondents looking to switch away from a
particular carrier vs. that carrier's market share. If a carrier is over-represented in the respondents relative to share,
this may indicate a loss of share after portability, and conversely a gain of share for those under-represented. By this
metric, Verizon Wireless again looks very strong, while AT&T Wireless and Sprint may see significant net defections.
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