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Broadband and phone bundles cheaper than broadband alone
Tuesday 12 August 2008 13:02:54 by Andrew Ferguson

Bundling of broadband with other services such as telephone, VoIP and IPTV packages has been a large growth area in the UK broadband market since 2006. Point Topic has taken a look at the average pricing for products around the world, and shows that while adding a telephone or VoIP deal to a broadband service can lower the headline monthly fee, adding IPTV can increase the amount you pay.

Region Avg Standalone DSL Tariff Broadband & Fixed Telephony Broadband & VoIP Broadband & IPTV Broadband & Fixed Telephony & IPTV
Western Europe 56.45 55.18 47.83 72.73 82.86
South & East Asia 39.87 22.65 n/a n/a n/a
Middle East & Africa 86.84 71.25 n/a n/a n/a
North America & Canada 54.93 64.97 n/a n/a 104.71
Latin America 64.57 81.10 n/a n/a 92.57
Eastern Europe 42.32 66.72 n/a 32.04 57.03
Asia Pacific 41.08 55.65 28.73 n/a n/a
Residential Monthly Rental of Bundled DSL Services (US Dollars)
n/a indicates sample size was too small, or no data available

There are a number of reasons communication providers are keen to get us all signed up to bundles, particularly telephone services, as the calls we make over the telephone line add to the revenue thus increasing their profit margins. Also with multiple service contracts, people are much less likely to switch to another provider as comparing bundles is still difficult. In the case of telephone bundles factors like call set-up charges and the rates for landline to mobile calls can vary greatly and make comparisons a complex process. One thing to be aware of is that if you are ever offered a good deal or bundle by your existing provider, that this will often mean you are entering in a new 12 month (or longer) contract.

The fact that IPTV services generally add to the package price are probably down to the the need to have a broadband network dimensioned to handle people making widespread use of TV over broadband, as well as the cost of signing content deals with the various movie studios and content providers.

Comments

Posted by jrawle over 8 years ago
How is it possible to make a price comparison without knowing the specs of the broadband products? I have a broadband-only product, and I'm quite aware that it's more expensive than some broadband+phone deals. However, it's ADSL2+ and truly unlimited: something I wouldn't get in a package deal. Yes, companies might make extra money from phone calls. But you need to consider the quality of the broadband service too for a fair comparison.
Posted by ciday over 8 years ago
Agreed. My TV provider, who I shall not name but is a certain large company, provided me with plenty of bundles with my TV but I chose to go separate as my exchange isn't unbundled with their service. Also, the ISP I signed up for is very reliable and I wouldn't want to change it for the world.
Posted by meldrew over 8 years ago
ciday makes a valid point. If Sky unbundled my exchange I would be there like a shot. If I go for phones with my ISP there is a "connection charge" as well as a monthly payment. These things are not quite as cheap as they may seem!
Posted by andrew (Favicon staff member) over 8 years ago
It is refering to IPTV, rather than satellite.

UK IPTV is Tiscali TV and the on the demand aspect of BT Vision.
Posted by CaptainW over 8 years ago
@jrawle - out of interest which company is it you are with and how reliable have they been? What's your experience been like with them? How does what you pay for a standalone DSL ADSL2+ compare in price to the Western average of $56.45 = £29.42 - that's using a google converter tool for the record:)
Posted by CARPETBURN over 8 years ago
If there was a single bundle deal of calls, TV and Internet in the UK that had the support IN EACH OF THOSE AREAS to match the price, id snap it up.... As it is though, there isnt, so they can keep it.
Posted by chrysalis over 8 years ago
jrawle yes I agree.

eg. is a bundle package from sky cheaper than a unbundled package from sky, answer is no if you consider ukonline their non bundled vendor, sky picnic which still isnt launch will be higher priced, the average bundler provider is cheaper because they tend to cross subsidise and devalue their broadband product by cutting costs heavily.
Posted by chrysalis over 8 years ago
voice services are a large cashcow for telcos now, consider all the 0870, premium numbers in use, the connection charge, addons like caller display it adds up, broadband just seems to be used as a means to get customers tied in to other more profiteable avenues from the larger providers now.
Posted by jrawle over 8 years ago
Be Unlimited, £18/month plus £11 to BT for the phone line. So that's the £29 you were looking for! Compare to Tiscali for example: £15/month for broadband and phone. But would I switch? No way!
Posted by pjwalshe over 8 years ago
Hi, I am doing some independent market research into this topic area.

ISPx offers an ADSL & phone bundle (service and product) that includes a phone and router that enables SIP based VoIP & PSTN calls (just as easy as on a std pstn phone) where the SIP service is as good as or better than PSTN: would this be of interest? how much would you be prepared to pay per month? If the bundle is only available on a contract basis would this make any difference?
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