Three for the price of one: Can broadband bundles save you cash?
The bundling internet, television and phone services is becoming increasingly more popular.
A recent Uswitch.com broadband customer satisfaction report found 58 per cent of households now take a triple play deal of phone, broadband and TV.
The popularity of these services has become so great, in fact, that some providers now only offer broadband as part of a package deal.
But are these deals they better than purchasing broadband, television, and phone services separately, and are they right for everyone? Johanna King unwraps the package deals and takes a peek inside.
What are bundles?
Bundles are a combined package of services that usually include broadband internet service plus either phone, television, or both.
Costs vary depending on what services are desired and what provider is selected .
Michael Jarvis, spokesperson for broadband provider BT says: "There's not really an average cost. It depends on which option you sign up for."
For example, a Virgin Triple Play bundle would cost £148 for the first year including set up.
The monthly cost would be £14 for internet speeds of up to 10Mb and 45 digital TV channels and free weekend calls to UK landlines. Phone line rental is an additional £11/month.
A TalkTalk internet and phone bundle would costs about £107 for one year, or £6.49 per month plus installation. Line rental would be an additional £11.25 a month.
The broadband would allow speeds of up to 8Mb and free night and weekend calls to UK landlines.
James Parker, mobile and broadband expert for Moneysupermarket.com, says: "The main reason people bundle is to make savings. Some people can save over £200 by bundling."
Virgin broadband service identical to that offered in a bundle costs £240 for the first year - £20 a month after three months at £15 plus set up fees - nearly £100 more than the three services together.
Other businesses offer less expensive internet-only packages. O2 charges £88.08 in the first year for speeds of up to 8Mb, but only if the customer also has a separate mobile phone contract.
Ordering over the internet can also be another factor that can change the cost of broadband or bundles.
Karen Jason of Virgin Media says: "Customers can also make a saving by buying our products online - we currently have a special offer of a £50 credit when you order online."
What type of user are you?
Determining if a package deal is cost effective largely depends on how you will use the services.
Mr Parker says: "You first need to find what type of user you are and then find a package to meet your needs."
The first step is determining how you use your internet and if you need to worry about download limits.
Broadbandchoices.co.uk divides internet users into three categories: light users, average users, and busy users.
Light users spend about an hour per day on the internet, and therefore should pick a basic broadband provider.
This type of user should not worry about download limits as they won't hinder a online activity.
An example on a no fills provider is Plusnet, while offers speeds of up to 8Mb at a cost of £5.99 per month and a download limit of 10GB.
Extra download allowance on this plan would cost £2 per 2GB, so users need to make sure the download limit would be sufficient - 60 hours of browsing the web and checking e-mail would take up around 1.5 GB and one Youtube clip about 0.2 GB.
Average users, who make up the majority of those who go online, spend between two and four hours on the web a day and download files occasionally.
These users have the most options and need to watch out for very low download limits as they could easily lead to extra charges.
An example of an acceptable download limit would be on TalkTalk's £6.49 a month plan, which allows for 40GB of downloads and speeds of up to 8Mb.
Busy users are those who work from home, play games online, or download a lot of music and movies. These users are on websites or downloading files up to 24 hours a day.
Busy users should select a specialist broadband provider that can cater to online needs. The most important thing is to make sure internet access is unlimited and not bound by a fair usage policy.
An example of a plan for busy users is Be Unlimited, which offers unlimited downloads and speed of up to 24Mb for £20 a month.
But that is just for broadband. When it comes to bundling, Broadbandchoices suggests choosing a service provider based on what product will be used the most.
Heavy TV watchers who use phone and internet occasionally, for example, should bundle with a company like Sky.
Those who spend most of their time chatting on their phone should bundle with a phone provider or consider paying for those services separately.
Once usage is determined, the next step is to wade through all the providers and find the best deal.
Mr Parker says: "It's a good idea to look on a price comparison website. See what's available in the market and even speak to friends and family."
Individual providers can also be a good resource when searching for deals.
Ms Jason says: "Customers can browse the different bundle options on Virgin's website to find the package that's best for their needs.
"Alternatively, customers can call us and one of our advisors will be happy to talk them through the best package for their needs."
A company like Virgin or Sky that is know for its bundles will also have a "build your own bundle" option on its website to help consumer customize a package.
To bundle or not to bundle
Mr Jarvis says: "The usual advantages to having a bundle would be having to deal with just one supplier, rather than two or three."
"The other advantage could be that all your services work perfectly together."
Mr. Parker agrees that the simplification of household finances is a major perk.
"One bill each month is easier to manage," he says.
But that one bill might become a major burden if the wrong bundle is selected, Mr Parker warns. "People need to be careful that each part of the pack suits their requirements."
If any part of a package does not align with household needs, customers could end up paying for services they don't use, or paying extra fees for usage not included in the plan.
Telephone call costs outside of a bundles plan are quite hefty, and can cost up to £11 a minute. Making taking those services separately practical for heavy home phone users.
Solo suppliers can also bring value rather than just frugality - often get what you pay for and cutting costs can also mean cutting service.
The biggest players in the market - those that offer the most price competitive bundles - sometimes come out at the bottom of customer service and technical support surveys, while smaller providers often put more effort into these areas.
"It does make sense to bundle but it's not for everyone," Mr Parker says.
"It all depends on the person, but usually the biggest savings comes from bundling all three together."
Overall, best value doesn't always mean cheapest. Look beyond the price and get a package that really suits your needs.
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