Companies
such as Comcast and AT&T use the benefits of bundling as one of the rationales
supporting their proposed megamergers.
Have you considered the alleged benefits and offset them with applicable
costs? Didn’t think so.
It seems
that consumers like the bundling concept, perhaps because they perceive savings,
or even freebies when they surely do not exist.
Consider the bundling of wireless handsets with service. Ask most consumers and they blithely report
how they got a “free” handset. Not
exactly.
They get to
use a handset on an installment sales basis: during their compulsory two year
service commitment, with hefty early termination penalties, consumers not only reimburse
carriers for the “free” handset, but pay well beyond the actual cost of the
device. The bundled handset plus service
rate substantially exceeds the carrying cost of the handset and the cost of
providing the wireless service. Each and
every wireless carrier mandated bundling until TMobile offered a cheaper “bring
you own handset” plan after it could not enjoy the fat and happy life of
selling out to AT&T.
The triple
play and quadruple play offered now and in the future combines desirable and
less desirable services just as cable television program tiering blends desired
networks and channels you might never watch. The triple play bundles voice,
Internet access and video. Packaging
voice regularly triggers a double payment if you have both wireless and
wireline service. With wireless packages now offering “free and unlimited”
voice and text, you do not need a cable or wireline telephone option, but that
gets bundled in with the video and data that you want.
Bundling may
save you money, but you really should price out the individual and desired
service elements and compare their total cost with that of a bundled option. At the very least claims of technological
convergence, corporate synergies and efficiencies are overstated. Most ventures would rather you not subscribe
only to “naked” broadband and cobble together the voice (VoIP), video (IPTV) and
data services you want.
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