Cox lauded for phone satisfaction

Cox Communications once again led the pack in residential telephone customer satisfaction in the West, and Embarq Corp. came in last, according to a J.D. Power and Associates survey announced Wednesday.

The cable television company, which began offering phone service in Las Vegas in October 2005, appears to be the toughest competitor for Embarq since the federal government deregulated local phone service in 1996.

The J.D. Power survey showed Cox leading six wire-line telephone companies in the West in customer satisfaction last year as well.

Cox scored 691 out of 1,000 possible points this year, down from 730 last year. Embarq edged up to 620 from 618 last year.

“I see this as a sign that Embarq is improving slowly — probably not as fast as they would like,” said Steve Kirkeby, executive director of telecommunications and technology research at J.D. Power.

“Cox was flying so high, and they only had one way to go and that was down,” Kirkeby said. “Cox in years past has just run away with it. Not anymore. It’s a lot more of a dog fight.”

In an e-mail, Embarq spokeswoman Vick Soares said: “We have experienced significant change and have steadily worked to simplify the communications experience for our customers, overhauling our product and pricing structures, enhancing and reinforcing our networks and creating bundles of services.”

Cox survey results show some difficulties with performance and reliability, compared to last year, Kirkeby said. The survey also reports on customer service, billing, image, cost of service and offerings and promotions.

While Cox has provided phone service in Las Vegas for only about 18 months, it has been in the phone business in other areas of the West for longer periods and has been top rated in the J.D. Power regional survey for five years in a row.

The biggest advantage for Cox is the ability to bundle telephone and cable television service, Kirkeby said.

Embarq promotes connections with partner DISH Satellite Television, but consumers do not view satellite partnerships as positively as a phone company’s own television service, Kirkeby said.

Juergen Barbusca, a spokesman for Cox, also emphasized the option of Cox customers to buy a package of phone, high-speed Internet and cable television services. “When customers bundle these services, they will get highly competitive prices and savings,” Barbusca said.

Embarq and other telephone companies may address its shortcoming in the future by offering Internet Protocol Television, Kirkeby said. This technology enables phone companies to provide television programs over their telephone lines.

The cable television company declined to disclose the number of customers it provides voice communications in Southern Nevada, but Barbusca said the company is exceeding expectations for adding new customers. Cox has been expanding in the valley since 2005, and now serves all but part of the central area.

Cox can provide service to any customer, business or residential, Barbusca said. In some cases, however, Cox must extend a line from the curb to the customer’s premises.

Embarq pushed for passage of a bill in the last legislative session that will allow it to shed regulatory controls over its retail prices in 2012. Rates are frozen until 2011 and can increase by $1 monthly the following year.

If Embarq raises its prices in 2012, competition with Cox phone service may get tougher, said Steve Tackes, a telecommunications lawyer and lobbyist who represented developers concerned about phone service.

Embarq seems uninterested in expanding its Southern Nevada fiber-optic network, which would enable it to better compete in Voice over Internet Protocol service, Tackes said. “The whole world is going to move to Voice over Internet Protocol.”

While the survey results appear negative for Embarq, “their stock price is doing great,” Tackes said.

Said state consumer advocate Eric Witkoski said, “With the movement toward more competition, especially in the residential market, there is going to be more focus on customer service.”