The telecommunications market has seen an increase in the number of services as well as the quality of services over recent years. More companies strive to satisfy the customer by offering special perks, deals or discounts for signing up as a new customer or for renewing service. In some cases, you can even get a better price on your telecommunications services by rate shopping and contacting several different companies before selecting one.
One of the ways in which telecommunications companies try to "woo" customers is by marketing their services in bundled packages. Traditionally, these bundled packages have been offered by cable companies offering digital phone service, digital cable and high-speed Internet services. As additional telecom companies are providing multiple services to customers, however, such as cell phone service, bundled packages include these products as well.
Companies that Bundle
Two of the major companies in the United States that offer bundled TV, Internet and cell phone products are Verizon and AT&T. These two particular companies contract with and resell DirecTV's satellite service, which is how they are able to offer digital television services.
With AT&T, you can build your own bundle right on the company website and pay for services online. In markets where all three high-speed Internet, digital TV and wireless services are provided, you can go to the website and select the "Build a Bundle" option. You can customize your package, choosing the Internet speed you want to pay for, the type of DirecTV package you want to order and the specific nationwide calling plan you want for your cell phones.
The most basic AT&T bundle, which includes 768Kbps in download speeds for high-speed Internet, the basic DirecTV Choice XTRA package and a nationwide cell phone calling plan of 450 minutes per month, costs around $90 with an advertised savings of around $34 off the regular prices for these services. The heftiest plan, which gives you the DirecTV premier plan, a nationwide unlimited cell phone calling plan and around 6Mbps download speeds costs $170 per month with advertised savings of around $55. You also get an AT&T $100 promotion card.
Verizon Communications also discounts to customers who want to sign up for cell phone service through Verizon Wireless. Residential customers can bundle two, three or four of the company's voice, wireless, TV and high-speed Internet services. Verizon customers can choose from a "Double Play," "Triple Play" or "Ultimate Freedom" plan. Though you can bundle these services with DSL, fiber-to-the-home Internet subscribers are not able to take advantage of the same deals.
Pros of Bundling Services
There are clear advantages to bundling TV, Internet and cell phone services. First, you can save a great deal of money if you're buying multiple telecommunications products at once from one company instead of ordering these services separately. The cost savings alone makes bundling worth it.
Aside from saving money, you can also save time and many potential headaches by letting one company manage the support for the TV, cell phone and Internet services. Instead of calling multiple customer service telephone numbers if you're experiencing difficulty and need technical support, you should only have to call one number.
In addition, you only receive one bill each month for all the services you've ordered. This can be much simpler and easier than remembering which amount you owe to which company and what services you've ordered from whom. In effect, the "bundling" simplifies the billing process.
Most residential customers, overall, enjoy the bundling options that AT&T, Verizon and other companies offer. According to Consumer Reports, approximately 85% of consumers who have bundled TV, Internet and cell phone or other telecommunications products report that they would either "definitely" or "probably" do so again with the same company.
Cons of Bundling
Though there's a positive side to it, bundling also presents potential problems for consumers and the companies offering the services. For instance, some companies have specialized only on offering a single type of telecommunications product for so long that it's difficult for some companies to change how things are run as far as customer support or billing is concerned. For example, it might be difficult to itemize your bill or figure out how the bill is organized.
Though the customer or technical support from such a company should be centralized, there is sometimes confusion among which department provides support for which type of service when you call asking for help. In addition, some customers have reported billing issues with extra fees or taxes added onto the bill, according to Consumer Reports.
In addition, bundling isn't offered everywhere for all types of services, which is a huge drawback for customers that need bundled packages. For instance, the telecommunications company you're with may offered bundled packages for home phone, Internet and TV, but may leave out cell phone products as part of the bundle. Alternatively, the pre-bundled packages may include services that you don't want or need. This is a big advantage for AT&T as its customers can choose their own bundle and level of service they want to pay for.
Choosing a Bundled Package
Before you sign up with a telecommunications company that offers bundled packages, you need to figure out the services you want. You don't want to end up with a service that you're paying for that you simply don't need as you'll end up spending more money instead of saving it, which is the main point of "bundling."
If you're looking at TV services in the bundle, you need to find how many channels and what type of programming you're offered. For Internet, you need to find out the speeds offered and if you can pay for more speeds if you need it. For cell phone services, you should ask how many minutes you're allotted, whether any are "rollover" and whether you can upgrade and save even more money.
Overall, choosing a bundled package for TV, Internet and cell phone service certainly beats ordering and paying for everything separately. With your specific needs in mind, you need to call each telecommunications provider available in your area, find out prices and the features included with each. From there, you can select the best value you're offered and sign up with your company of choice.
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