Tuesday, January 5, 2010

Is Bundling Digital Services Together More Economical Than Just Purchasing Separate Services?

The current communications and home entertainment fad from the major communications and media businesses is bundling two or more services into one discount package. Comcast, Time Warner Cable, and other cable providers began the trend and now you'll find it all over the place. Does purchasing bundled TV, internet and phone services truly help you spend less money? This article will compare and contrast the digital products that the leading companies provide their customers with and find out who offers the best deal.

IFor some of us it's hard to swallow the idea of turning over all our home entertainment and communications needs to just one provider. Call it jaded consumer distrust, but it makes us uncomfortable. Can't they suddenly raise the rate and I'll be locked into a contract I can't get out of? 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. Why don't we review each of the points separately beginning with the issue about what actually takes place once the discount offer is no longer available. Due to the high level of competition in this industry, rates are rarely raised. 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. It just might take a simple phone call from you to get the latest deal. 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. The question of what happens to the hardware a service provider gives you comes down to the individual business an their policies. Usually all you get from a provider is a digital receiver for each television in your house 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.  Usually, companies will not charge you surprise fees for using their equipment unless it's lost or severely damaged. A small monthly fee may be charged for a monthly broadband modem rental fee if you do not purchase one of your own. You may also be charged a small fee for additional digital receivers for multiple TV's. You need to check with the providers in your area in order to learn the exact regulations. 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. If you haven't lost the equipment and it still works it's unlikely you will have to pay anything. This is why I don't see any reason for consumers to not take advantage of a bundle offer over any apprehension about the equipment provided by the company. Every digital company has basically the same rules and regulations about equipment fees and how to return them.

Let's examine the bundles you can now order from the major digital service players. 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 that at the time were 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. But in recent years the satellite industry has remained stagnant. Restricted by technological limitations, satellite companies like DirectTV and Dish are fighting to compete in the digital revolution currently going on in cable and telecommunications field. 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 option. National communication businesses like Qwest, Verizon, and AT&T have recently been providing high-speed Internet, digital television, and cell and landline telephone packages. Telcos entered this market by utilizing fast fiber-optic networks available in high population centers and through partnerships with satellite TV and broadband companies. Even though a telco company offers quality and competitive pricing, I still don't recommend it for all three services. You are really just getting a repackaged product in most areas where fiber optic networks aren't accessible. If one of the resold partners wants to change prices, where does that leave you?

So what company do I think customers should get their cable and broadband from? I am a fan of cable bundling. Cable companies today offer a more complete digital and HD programming lineup that matches and often beats what Dish and DirecTV offers. In addition, cable customers get add-ons such as digital video recorder boxes and on demand service which satellite is just starting to provide. Cable is currently superior because you're getting digital cable TV, broadband internet and digital phone from one source that will support you in all three services. However, for those who are just in the market for television service it might pay to consider satellite or teco because the competition is higher. But when you combine services you can't get a better deal considering the products and discounts a cable provider can give you. I suggest using my article as a guide and comparing the features each provider offers for yourself. Utilize this knowledge to locate the best broadband, television, and phone promotions.



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