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Bundle Madness
'Triple Play' unpopular, 'Quadruple Play' just absurd

If you listened solely to ISP press releases, you'd think that the triple-play bundle is all the rage, and that the majority of customers are lining up to pay one company $100+ for three or more services. In reality, most customers still prefer to grab one or two services, and frequently can net better bargains by shopping around for their third or fourth service - be that video, wireless, or VoIP.

According to a Jupiter Research survey from March, only five percent of subscribers sign up for the triple-play, and only around a quarter of all customers are interested in nabbing all services from a single provider. "The assumption that everybody wants a bundle is flawed," a Jupiter analyst told the Washington Post last March.

This week a new study by Pyramid Research claims most customers are interested in either one or two services. The study finds that "most telcos are selling 1 to 1.5 revenue generating units (RGUs, aka one service) per customer while cable companies perform slightly better, selling around 1.5 to 1.9 RGUs per customer" (thanks to cable deploying VoIP faster than telcos are deploying video).

The report almost laughs at the idea of the "quadruple play."

Occasionally you'll catch rare candid admissions by incumbents that customers aren't quite as keen on the triple-play as their press releases would lead you to believe. For example, Time Warner's CFO recently admitted that only 7% of his company's customers subscribe to three services, and the majority only purchased a single service.

Whenever this topic is breached, there's a chicken and the egg debate here that springs up: are customers really saving significant money by bundling? Or are they being penalized for not bundling in environments where competitive choices are lacking? Comcast's stand-alone broadband service remains ridiculously expensive for someone who doesn't watch television. Similarly, stand-alone VOIP from Comcast costs a whopping $55.

Bundling is, in part, an effort by providers to obfuscate the real price of services, clouding the consumer's ability to directly compare single-service prices. Once a customer has switched to a single-provider, they're frequently greeted by unexpected fees, and the cost-savings they expected are nowhere to be found.
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kv5e
Ride Free
Premium Member
join:2001-12-04
Mesquite, TX

kv5e

Premium Member

Package

Put it an attractive enough container....and you can sell...
jchambers106
join:2004-12-10
Kansas City, MO

jchambers106

Member

Re: Package

I would like to have one with no contract
ub355
join:2005-09-15
Brookfield, WI

ub355 to kv5e

Member

to kv5e
Cable inc DVR
Internet @ 5.0 mbps
Phone unlimited long distance, caller ID, ect

All $99.00/ month fixed for 24 months no contract
Bobcat79
Premium Member
join:2001-02-04

Bobcat79

Premium Member

My services

Here are my services:

Video - Cablevision (no contract)
Phone - Verizon (no contract)
Internet - Verizon (no contract)
Wireless - Verizon Wireless (no contract)

Note the lack of contracts. I can change any service at any time with no penalties.

Since Verizon and Verizon Wireless are basically separate companies, I'm getting four services from three companies. (The wireless service is not bundled with the other two Verizon services.)

spamd
Premium Member
join:2001-04-22
Cherry Valley, IL

spamd

Premium Member

Re: My services

said by Bobcat79:

Video - Cablevision (no contract)
Phone - Verizon (no contract)
Internet - Verizon (no contract)
Wireless - Verizon Wireless (no contract)

Note the lack of contracts. I can change any service at any time with no penalties.
This will never happen. Big businesses starving for cash like contract/penalties terrorism. Or they will promise you no-strings attached (for 6mo.) then you will be locked in or pay up to $500.00 to breach your contract. Cell phone co., Sat. tv, AOL, NetZero all have charges if you discontinue service.

roamer1
sticking it out at you
join:2001-03-24
Atlanta, GA

roamer1

Member

Re: My services

said by spamd:

AOL, NetZero all have charges if you discontinue service.
Cell phone and satellite companies, yes...but dialup ISPs???

-SC

retrogame
join:2003-04-14
Auburn, MA

retrogame

Member

Re: My services

Read the fine print on the Netscape ISP ads, 12 month contract required.
Bobcat79
Premium Member
join:2001-02-04

1 recommendation

Bobcat79 to spamd

Premium Member

to spamd
As I said in my original post, I have no contracts for video, phone, Internet, or wireless services. I'm on month-to-month for all of them. There are no cancellation penalties.

Jeff
Connoisseur of leisurely things
Premium Member
join:2002-12-24
GMT -5

1 edit

Jeff to Bobcat79

Premium Member

to Bobcat79
I'm with you.

Vonage (Voice) - No Contract
Verizon Fios (Data) - No Contract
Verizon Wireless (Cell) - year-to-year contract
The Dish Network (Video) - no contract

Works out to be cheaper then if I did a Cablevision triple play, for example.

When FiosTV comes to me, that will be evaulated, but I have a feeling I might jump on that, which indeed, will make 3 out of my 4 services provided by Verizon. But, it's because I want that, not because of any deals offered. I'd rather pay seperately for 3 services I want and pay $15 more/month in total rather then [reluctantly] get a package deal for less money per month for services that I'm not all that thrilled with.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

2 piece bundles doing OK

If I am like many users, a 2 piece bundle is pretty standard. I get internet and video from cable in a pkg. And I get land line and cell phone access from a telco. Both have discounted bundled packages. But I don't see any special deals out there that would make me want to combine all 4 into 1 pkg.

Comcast offered to add their CDV for $33/mo for only a year(going to $40 at end of 1 yr), but that is no discount at all off what I am paying as part of a landline/cell pkg from the telco.

Besides, by keeping 1 foot in each camp(telco,cable), I can leverage them against each other when angling for a better deal on the 2 way pkgs.

Pz_
join:2001-03-31
Brownsburg, IN

Pz_

Member

Re: 2 piece bundles doing OK

I have internet and CATV from Comcast, even though I don't use the TV part. I have DTV for television. However, the penalty for having internet without cable tv is $2.00 more per month than the basic cable offering.

So yeah, I guess I have a bundle, even though I don't want/use it.

Netbum
join:2002-04-08
Oakley, CA

Netbum

Member

Re: 2 piece bundles doing OK

said by Pz_:

I have internet and CATV from Comcast, even though I don't use the TV part. I have DTV for television. However, the penalty for having internet without cable tv is $2.00 more per month than the basic cable offering.

So yeah, I guess I have a bundle, even though I don't want/use it.
Same exact scenario for me.
Although...cable Internet is straining the budget abit..well at least the WAF

POB
Res Firma Mitescere Nescit
Premium Member
join:2003-02-13
Stepford, CA

POB

Premium Member

Therein Lies the Rub

Bundling is, in part, an effort by providers to obfuscate the real price of services, clouding the consumer's ability to directly compare single-service prices. Once a customer has switched to a single-provider, they're frequently greeted by unexpected fees, and the cost-savings they expected are nowhere to be found.
If more consumers were aware of this bait-and-switch tactic, the sum total of one of P.T. Barnum's own would not be quite so high as it currently is. But since Internet content is headed the way of cable thanks to gullible, weak minded sheep who believe the telcos, consumers better get used to getting shafted in yet another financial orifice.

roamer1
sticking it out at you
join:2001-03-24
Atlanta, GA

roamer1

Member

Wireless bundles don't make sense

Bundles of services for the home (home phone service whether POTS or VoIP, Internet, video) make sense, but to me, bundling wireless and other outside-the-home services doesn't make much sense, given that most people's choice of wireless carriers is driven by coverage, phones, and whether friends/family are on the same carrier, *not* strictly price.

-SC

The Beer
I Love It When A Plan Comes Together
Premium Member
join:2001-07-24
Lincoln, NE

The Beer

Premium Member

Strange....

No really I can't see how the triple play is not a win-win.

I WOULD SAVE MONEY with a bundle however I only have separate services because of stupidity at Qwest.

Qwest will not let you bundle DirecTV and stand alone DSL, and they will not let you have Static IP's with the DSL they offer in the bundle.

Yes the bundle would save me money, and I still have my services with Qwest, the idiots just will not bundle the advanced feature set.

oliphant
I Have 8 Boobies
Premium Member
join:2004-11-26
Corona, CA

1 recommendation

oliphant

Premium Member

Not cheap enough...

People aren't interested because it's often not a good deal. There is typically once service that's a rip. One that comes to mind is often cable or telco branded VOIP which is often 300% the price of some budget competitors. $5 off ain't gonna do it.

richardpor
Fur it up
join:2003-04-19
Portland, OR

richardpor

Member

I do not get it.

I really do not get what is the issue is concerning bundling. Simple take the price of each individual compnent of the bundle add them together and compare to the bundle price then take the right action. I do not think people are that stupid. Then again, these people are the product of our public education system. A school system that is more concern with political correctness teaching math.

tsu9
join:2001-08-17
Wheeling, IL

tsu9

Member

New theory

New theory: People like paying less money for more things.
AdamD21
join:2002-01-09
Maspeth, NY

AdamD21

Member

Re: New theory

I read somewhere, and I agree somewhat, that in large part it's "psychological": it appears to be easier to pay three or four $40-70 bills than one $200-300 bill.


envoid
join:2002-12-21
Duluth, GA

envoid

Member

Re: New theory

I would have to agree. Its easier to pay the $40-$70 when making $300 a week compared to dropping a whole paycheck to the bundled price.

Dagda1175
join:2001-06-17
Goleta, CA

1 recommendation

Dagda1175

Member

How is this bad?(double play)

I have tv and internet cable and I save ten dollars a month. I cant see why thats bad -- or confusing.

SDKiwi
join:2002-05-27
El Cajon, CA

SDKiwi

Member

Re: How is this bad?(double play)

said by Dagda1175:

I have tv and internet cable and I save ten dollars a month. I cant see why thats bad -- or confusing.
Despite the theme (and selected stats to support the claim) of this article, many customers have the same reaction and do indeed bundle up...but only if ISP service is good.

Rogers1
join:2004-10-14
Canada

Rogers1

Member

I like my bundle

I like the Rogers Bundle i Have its 15% of what ever you are paying and at this time I am normally saving 30 to 45 dollars a month witch is a good deal. Also They own a publishing company So I get 2 issues of Canadian Business a month bundled in my package for $1.00.

So far I have Digital Cable, HSI, And Wireless. I will sign up for Home Phone when I can get it possibly Long distance if they can beat the Deal I have now.

Dipsomaniac
Oh My, Yes.
join:2001-12-12
Toronto, ON

Dipsomaniac

Member

Re: I like my bundle

I save something over $60 a month with Rogers bundling, and that's with three services. Why would I need home phone when I have a cell?

Rogers1
join:2004-10-14
Canada

1 edit

Rogers1

Member

Re: I like my bundle

I do a lot of LD and its not cost effective with my Cell phone. Also I am not the Only one that lives in my home and we do not all have cell phones.

needforspeed59
Cruise Ship Just Passing Through
join:2001-05-02
La Place, LA

needforspeed59

Member

Cox Sez More Than Half of Customers Bundle

This article says just the opposite.

"NEW YORK (Reuters) - Cox Communications, the third-largest U.S. cable operator, said on Tuesday said its combination package of video, voice and high-speed Internet services had helped it post record first-quarter subscriber growth and continued reduction in customer defections.

Cox, which became a private company in December 2004, said its latest figures show that more than half of its 5.9 million customers subscribe to two or more of its services. More than a million households have subscribed to all three products as a bundle...." The article conitnues at »today.reuters.com/busine ··· X-DC.XML

ssj4android
Redefining Reality
join:2002-04-14
Wyoming, MI

ssj4android

Member

Quadruple Play?

Who's playing, The Flash?

madylarian
The curmudgeonly
Premium Member
join:2002-01-03
Parkville, MD

madylarian

Premium Member

Bundling....big deal

I don't understand why bundling of services by broadband providers is such a hot button issue. It's not as if bundling of services is new. It's been around for ages in lots of areas. We get a discount on our car insurance by bundling it with our home owner's policy. We've been getting a discount on premium channels by buying more than one for more than 20 years. We got a discount on new doors by getting them at the same time we got the new windows. And it's long been the case with the different services from the phone company. Big whoop.

On the other hand, I would no more get ALL of my communication services from one company than I would put all my money in one bank.

mady
scottwn
join:2004-06-07
Birmingham, AL

scottwn

Member

Re: Bundling....big deal

Here's what I have:
Voice - Packet8 ($24.18)
Cell - Sprint ($40.09)
TV - Dish Network ($78)
Data - ACD.net ($48.20)

No one in my area even offers triple play since Comcast doesn't offer VoIP here yet and AT&T doesn't do video. I don't think I'd ever be interested in a triple or quadruple play offering.

AnonProxy
Premium Member
join:2001-05-12

AnonProxy

Premium Member

I have the triple play

$131 a month.

Internet 5/1
DVR 300 channels and nothing on and DVR
Phone (not VoIP) but dial tone over coax.

Sort of cool, the caller ID on TV is very cool