Bundled Plans: more complicated than they sound

Just because they make is sound like a the "best" deal, doesn't always mean your going to save money. In some cases, bundled communications end up costing you more than separate providers. Before you decide to combine everything, make sure you know exactly what you're getting in to.

All-in-One Telecom Packages: The Savings Don’t Come Simple
By: Alina Tugend
New York Times
Published: February 16, 2008

This month, my husband and I decided to make a major move in our lives. We combined our cable television, high-speed Internet and telephone service under one umbrella — or if you are up on the lingo, we bundled our services.
It sounds sweet, doesn’t it? Like swaddling a baby. But don’t let it fool you — the communications version of bundling is not such a simple pleasure....

What is behind the recent push for bundling, or “triple play” as it is often called? Regulatory and technological changes over the last decade mean that cable and phone companies can sell you all three services.“Bundle plans are being pushed a lot by carriers because they’re moneymakers,” said John Breyault, research director of the nonprofit Telecommunications Research and Action Center in Washington. Also, “customers who subscribe to multiple services are less likely to leave.” Consumers can also be the winners, if they are careful and question the sales representatives thoroughly. Let me impart my hard-earned knowledge and suggest that anyone considering a bundled plan ask these questions:
¶Are taxes included, or is there a flat rate?
¶Is there a one-time installation fee? Is there a fee to keep your phone number?
¶Is a contract required? For what duration? Can the fees rise over the contract period? What will they go up to after the contract expires? (For example, Cablevision’s bundled service rises to about $125 a month after the first year.)
¶If I change or drop one of the bundled services, will I be penalized? (Generally, the answer is yes.)
¶Is there a termination fee? (Verizon, for example, may charge a $200 fee if you cancel before the end of a two-year contract; Cablevision requires no contract and has no termination fee.)....

In the end, after flailing my way through what seemed to be the world’s most complex word problem (if Company A charges x, but adds on y, times 12, and Company B charges z, then deducts n, divided by 24), it seemed to be a toss-up....Consumer Reports, in its February issue, looked at the bundling issue. It found that there were good deals out there, but sometimes they involve buying more services than you want or need....[If] you want only basic TV, minimum Internet and little or no long-distance calling, buying a triple play service may end up costing more than what you already have....
http://www.nytimes.com/2008/02/16/technology/16shortcuts.html?pagewanted=2&_r=1&ref=technology

Before you commit to spending more than you should for a bundled package, check out this comprehensive comparison of long distance service providers and affordable, high-quality fiber optic options: http://www.1010phonerates.com/phone_plans.html