Broadband and phone bundles cheaper than broadband alone
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|
|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|
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.