Until recently, methodologies that identified the extent to which various improvements in quality caused financial returns were unavailable (Aaker & Jacobson, 1994; Zeithaml, 2000). Therefore, the benefits of the investment in improving the quality of mobile telecommunications networks have been questioned by many operators. Others have accepted investments in quality as unquestioned generators of returns, with the result that some firms have run into financial difficulties after having incurred heavy investments in quality (Rust, Zahorik & Keiningham, 1995). For instance, some firms faced serious difficulties after winning the Malcom Baldrige National Quality Award in 1990. Also, several surveys conducted during the 90’s have indicated a failure of quality implementation approaches (such as Total Quality Management) to increase the economic returns of firms (Ittner & Larcker, 1996; Keiningham, Zahorik &Rust, 1994). In addition, it has been difficult or impossible to choose objectively between different types or levels of quality investment. These negative experiences, plus concerns over cost reductions in many telecommunications operators, caused a real interest in the benefits of quality investments. The identification of perceived quality as a driver of customer satisfaction and loyalty is a well researched field, but firms began to feel the need for methodologies to connect quality investments to the bottom line. In fact, for many quality investments there must be a point above which further investment is unprofitable. Rust et al. (1995), following the previous work of Rust & Zahorik (1993) presented a very promising approach to this problem named ROQ (Return on Quality). The authors consider a causal chain between quality improvement and profitability, through customer retention and cost reduction in a duopoly context. Danaher & Rust (1996) empirically show that service quality impacts customer attraction and customer usage rates. Bolton & Drew (1991) found a relationship between service change and customer attitudes in the fixed phone industry. Aaker & Jacobson (1994), Anderson, Fornell & Lehmann (1994), Anderson, Fornell & Rust (1997) and Ittner & Larcker (1996, 1998) found significant associations between customer satisfaction (or other related variables) and financial performance data such as Return on Investment (ROI) and accounting returns. Zeithaml (2000) presents a survey of