au Ranks Highest in Japan Mobile Telephone Service Customer Satisfaction in Nine Regions, J.D. Power Asia Pacific Reports

TOKYO: 5 December 2006 — For the first time, au ranks highest in customer satisfaction with mobile telephone service providers in all nine Japanese regions included in the study since 2003, which is when the study began covering these regions, according to the J.D. Power Asia Pacific 2006 Japan Mobile Telephone Service Satisfaction StudySM released today.The study, now in its eighth year, measures the overall satisfaction of individual mobile phone users in nine regions across the nation (excluding Okinawa Prefecture): Hokkaido, Tohoku, Kanto (including Koshinetsu), Tokai, Kansai, Hokuriku, Chugoku, Shikoku and Kyushu. Six factors are used to determine overall customer satisfaction with mobile telephone service providers. In order of importance, they are: handset; corporate image; call quality/area; non-voice functions/services; cost; and customer contact strength.

While au performs well in all factors that determine overall satisfaction, it receives particularly high ratings from users in call quality/area and non-voice functions/services.

“Because au has developed the infrastructure for the third generation of mobile telecommunications earlier than its competitors, user satisfaction with the brand has been positively impacted,� said Yuji Sasaki, senior manager of research at J.D. Power Asia Pacific. “Additionally, au focuses on providing services in which mobile phone users have expressed a strong interest, such as music-related functions and one-segment television broadcasting. These highly desired services and functions could provide au with a competitive edge.�

NTT DoCoMo follows au in the rankings in all nine regions included in the study, performing well in the customer contact strength factor. Vodafone (currently SoftBank Mobile) ranks third in all regions.

NTT DoCoMo, which has traditionally received particularly low ratings from users with regard to cost, has steadily narrowed the gap with its competitors, receiving similar ratings to au and Vodafone from users who have subscribed to mobile phone services in the past 12 months. NTT DoCoMo users report that the average basic monthly charges they pay have decreased in 2006 to almost 7,174 yen per month—down by nearly 500 yen from the 2005 study. Additionally, problems regarding call quality with FOMA—a third-generation mobile service of NTT DoCoMo—have decreased.

Prior to the introduction of Mobile Number Portability (MNP) in Japan, the study examined the interests and attitudes of mobile phone users regarding the system, which enables customers to retain their mobile telephone numbers when changing from one mobile network operator to another. The study finds that while the level of awareness for MNP has increased compared to 2005, fewer users want to switch to another service provider and take advantage of the new option. Despite high expectations prior to the system’s introduction, fewer than 2 percent of mobile phone users will consider changing their service provider to take advantage of MNP by the end of December 2006.

“Despite the availability of MNP, users hesitate to change their mobile service providers because of the cost to switch to another provider, various discounts offered to retain existing subscribers and the necessity to change their mobile e-mail address,� said Sasaki. “It is presumed that MNP in Japan may not be as popular as it is in the United States and some European countries, which have already introduced the system.�

The study also finds that the frequency of using the flat-rate packet system—which allows customers to access the Internet and e-mail as often as they wish—has doubled. Additionally, users who have the latest mobile phone handsets equipped with one-segment broadcasting or music playing functions are highly satisfied.

“It is essential that providers not only be competitive with their pricing, but also offer superior services earlier than competitors by understanding market trends and customer expectations,� said Sasaki. “For example, service providers can increase the variety of Internet content available on a mobile phone and the amount of handsets with one-segment broadcasting, as both features are becoming popular among users in Japan. In a competitive market, effectively promoting the availability of these features is key in attracting more users.�

The 2006 Japan Mobile Telephone Service Customer Satisfaction Study is based on responses from 7,500 mobile phone users living in nine regions across the nation and excludes Okinawa Prefecture. The survey was conducted in August 2006.

About J.D. Power Asia Pacific
J.D. Power Asia Pacific, established in 1990, conducts customer satisfaction research and provides consulting services in the automotive, information technology and finance industries. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.co.jp

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is an ISO 9001-registered 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. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands including Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2005 were $6.0 billion. Additional information is available at www.mcgraw-hill.com

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Source: J.D. Power and Associates