Saturday, December 5, 2009

Which is Better - Bundling Digital Services or Shop and Compare?

The latest trend in home entertainment and communications from the big media and telcom companies is to bundle two or more services into a single discounted package. This trend started with cable companies like Comcast, Time Warner Cable, Charter and Cox and moved to national phone carriers who now offer TV and broadband in select areas on top of traditional phone service. Is it better to purchase a bundle (for your television, internet and phone) or is it cheaper to get each one individually? 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. It doesn't sit right, and especially for Americans, it feels unnatural. Can they instantly increase the price and I'll be stuck with I contract I am unable to get out of? Will I be tied to special equipment or hardware that I'll be charged for or stuck with if I change companies? 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. Luckily, rate hikes are rare because these companies are so competitive. 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. Whether you get stuck with any special hardware that you're responsible for comes down to the individual company. 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. If you ordered an upper level package it may come with a DVR box. Usually, companies will not charge you surprise fees for using their equipment unless it's lost or severely damaged. You may be charged a small monthly fee for additional digital receivers or a monthly broadband modem rental fee if you don't purchase one of your own. Get a hold of the digital providers in your locality to find out their actual rules. 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. Baring loss or damage, you shouldn't be charged anything. For this reason I don't see any cause for customers to discount a bundle offer over any concern about the equipment the provider sends you. Each of the major digital companies have essentially the same policies regarding hardware fees and returns which don't change whether you're getting all your services from one company or several.


Now we can take a closer look at exactly what kind of bundle packages you can currently purchase. Satellite become popular again in the 90s when they installed small dishes that delivered higher quality than cable. At the time Satellite TV had more channels at a lower price 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. Recently, national telecommunications companies like AT&T, Qwest, and Verizon are now offering digital TV, high-speed Internet, home, and mobile phone deals. 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 the quality and price point is there, I'm currently not recommending consumers go with a telco company 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? Right now I'm a big proponent of the bundle deals coming from the major cable providers. Today's cable companies offer a complete digital and HD programming lineup that matches and often beats what Dish and DirecTV offer. 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 get two or three services together you can't beat the products and discounts cable providers offer. You should evaluate for yourself every aspect of the main cable and satellite offers. If you do this you can find the best digital TV, high speed internet and telephone offer to suit your needs and your budget.



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