Saturday, November 21, 2009

Should I Buy Phone, TV, Internet Together Or Separately?

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. Does purchasing bundled TV, internet and phone services truly help you spend less money? For years, I have been covering digital services and products and in this piece I'll give you a look at these package deals and let you know whether going to one company for all of your broadband, television, and telephone requirements is ideal or whether shopping around is the best method.


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 just doesn't feel right for some reason. We wonder if the cable or telco provider will increase the amount I have to pay without warning and I'ill be obligated to pay it no matter what because I signed a contract? 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 normal concerns when you are shopping around for digital home services. 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. I've found that the level of competition is so great among these companies rate hikes are few and far between. 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 hardware issue comes down to the terms and conditions of each provider. 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. Most often, the company will not charge you any surprise fees if you are using the equipment in the normally expected manner. 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. Call the companies in your service region to learn their precise hardware guidelines. If you change address or switch providers you're generally only responsible for giving the equipment back to the office of the local company. Assuming the equipment is not lost or damaged, you probably will not have to pay anything additional. 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.


Now lets look at the bundles you can currently get from the major players in the digital services space. Satellite become popular again in the 90s when they installed small dishes that delivered higher quality than cable. Satellite TV also had more overall programming than cable at a price that was usually lower than cable. But innovation in the satellite industry has been fear and far between over the past decade. Limited by their own technology, Dish and DirecTV are struggling to compete in the world of broadband and digital phone service. 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. This happens through a limited fiber-optic network available mainly in cities and by partnering with satellite and broadband providers in order to offer internet and TV. The technology, where the fiber-optic infrastructure exists, is exciting, but I just can't recommend subscribers jump on the telco ship yet. You are really just getting a repackaged product in most areas where fiber optic networks aren't accessible. Plus, if one of these partners wants to change pricing terms or pull out of the deal with your telco where does that leave you?


So where am I recommending customers spend their money for entertainment and communications? Currently I'm an advocate of bundle deals available from major cable companies. 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. With a cable bundle package you will only have to deal with one company if there are problems and you need support. 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. However, when you order 2 or even 3 services at the same time it is difficult to beat the products and deals the cable companies can give you. You should evaluate for yourself every aspect of the main cable and satellite offers. Use this information to locate the best value in TV, broadband internet, and telephone bargains available to you.




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