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Wednesday, February 18, 2009

If you've been shopping around for telecommunications services for your home, then you've probably stumbled across the idea of bundling. However, that doesn't necessarily mean that you know exactly what it is or the implications of taking advantage of it. First what bundling is: The term “bundling” is used to describe combining two or more telecommunications services onto a single bill. This provides you with added convenience when you go to pay your bills and often provides savings in the form of a discount that many companies offer in exchange for having the services bundled together. After all, it makes more sense for a service provider to let you have your phone and Internet service for less than it does to only have you subscribe to a phone service plan and go elsewhere for your Internet service. Clearly, bundling offers advantages both for subscribers and service providers.

Having said all of that, there are some things about bundling that you should be cautious about when you're looking at the bundled services that different companies offer. For example, Comcast offers a good model for bundled services because it offers digital cable TV, high speed Internet, and phone service on its own rather than contracting out with different companies to offer some of those services. Keeping all of the services under one roof the way Comcast does is a good way to do business because it means that when there's a problem, there's no one to pass the buck to- its simply up to Comcast to get things working again. By contrast many satellite TV and phone companies will sell you bundled services, but will have other companies deliver those services that they can't offer on their own. Typically this will mean that if a satellite TV company offers phone and Internet service bundled with its TV service it has a contract with your local phone company which will provide the phone service and the high speed Internet service in the form of DSL. This means having to deal with two different companies which can be a real headache! Additionally, if you happen to live in an area where DSL isn't available, your satellite TV company will have to subcontract the Internet service to a satellite Internet provider. This means three different companies to deal with, which is even more of a headache and defeats at least part of the benefit of bundling!

Another problem with going with a company other than Comcast for bundled services is that the technology used by other companies is inferior. Specifically, satellite technology can't match Comcast's digital cable TV technology in terms of reliability (you can't get much more reliable than buried cables) and function when it comes to newer technologies like HDTV and video on demand. In terms of high speed Internet, DSL and satellite Internet simply can't provide the level of performance of Comcast's cable based Internet service. In fact, there are a lot of things that satellite Internet simply can't do because of its high latency!

Hopefully you now have a good idea of what to look for in bundled services and what to avoid.
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