Is Bundling Digital Services Better Than Shop and Compare?
The latest trend in home entertainment and communications from the big media and telcom companies is to bundle two or more services into a single discounted package. This trend started with cable companies like Comcast, Time Warner Cable, Charter and Cox and moved to national phone carriers who now offer TV and broadband in select areas on top of traditional phone service. But are these just marketing ploy's to get all your business or does bundling television, internet, and phone service really save you money? I've been covering digital products and services for years and in this article I'm going to look at these package deals and find out if going to one company for all your TV, broadband, and phone needs is the best or if shopping around is the way to go.
None of us want to turn over all our essential services to one individual company. It just doesn't feel right for some reason. Can't they suddenly raise the rate and I'll be locked into a contract I can't get out of? Will I be tied to special equipment or hardware that I'll be charged for or stuck with if I change companies? These are all valid concerns when you're looking at all the competing offers and promotions you're inundated with from cable, satellite and telco providers. Let's look at each point individually starting with the concern about what happens when a special offer ends. I've found that the level of competition is so great among these companies rate hikes are few and far between. In fact, the drive to keep customers is so great that even when promos or special deals end, very often existing customers can extend their offer or move to a new promotion. Some cable companies, like Charter Communications, are currently giving users the chance to lock in rates for as long as two years if they agree to take a complete package deal.
Whether you get stuck with any special hardware that you're responsible for comes down to the individual company. The type of equipment you're going to get from your provider is usually just a digital receiver for your television and a broadband modem if you order high speed Internet. It's possible you may have a DVR (digital video recorder) as well if you've ordered a higher tier package. Generally, though, most companies are not going to charge you any unexpected fees for the normal use of their equipment. You may be charged a small monthly fee for additional digital receivers or a monthly broadband modem rental fee if you don't purchase one of your own. Contact the providers in your area to find out their exact polices. If you move from the area or change service providers you're usually just responsible for returning the equipment to the local provider's office. Baring loss or damage, you shouldn't be charged anything. For this reason I don't see any cause for customers to discount a bundle offer over any concern about the equipment the provider sends you. Each of the major digital companies have essentially the same policies regarding hardware fees and returns which don't change whether you're getting all your services from one company or several.
Now lets look at the bundles you can currently get from the major players in the digital services space. Satellite saw a big resurgence in the 90's when they introduced small dish's that could be installed on the side of a house and all-digital channels which at the time was far clearer than the signal being delivered by cable companies. Satellite TV also had more overall programming than cable at a price that was usually lower than cable. Since then satellite hasn't changed much at all. Limited by their own technology, Dish and DirecTV are struggling to compete in the world of broadband and digital phone service. Even though television prices are still very competitive, satellite has a poor Internet option that's only useful to homes in very rural areas and no phone service. Recently, national telecommunications companies like AT&T, Qwest, and Verizon are now offering digital TV, high-speed Internet, home, and mobile phone deals. They can now do this through a slowly growing fiber-optic network available in metropolitan areas and by partnering with satellite and broadband providers to cover the TV and Internet portions of the package. Even though the quality and price point is there, I'm currently not recommending consumers go with a telco company for all three services. Since they are partnering with other companies for the TV or broadband service, you're merely getting a repackaged product that puts more hands in the pot and can create service headaches. Plus, if one of these partners wants to change pricing terms or pull out of the deal with your telco where does that leave you?
So where am I suggesting consumers spend their home entertainment and communications dollar? Right now I'm a big proponent of the bundle deals coming from the major cable providers. Today's cable companies offer a complete digital and HD programming lineup that matches and often beats what Dish and DirecTV offer. Plus, you can get great add-ons like DVR boxes and on demand service that satellite is only beginning to deliver. And unlike the telco's, you're getting digital cable tv, broadband internet, and digital phone service all from one company that will support all three products. If you are only looking for one service, like digital television, then the competition between satellite, cable and the telcos is tighter. But when you get two or three services together you can't beat the products and discounts cable providers offer. Take a look for yourself and compare the features of each major provider. Use this knowledge to find the very best television, broadband internet, and phone deal for you!
