VOIP.com - Internet Phone Service

voip.com Internet Phone Service

VoIP > Blog

Voip Blog

Are Bundles Cheaper?

Saturday, April 26, 2008

Chances are, you've been approached by either your local exchange carrier or your cable company about "bundling" your services and saving. In other words, combining video, voice, and data (a.k.a. the "triple play") onto one bill. In a few cases, you can even combine mobile phone service, thus giving you the "quadruple" or "four" play. The theory goes, you'll save money because all those services will be on one bill.

But will you save money? Do the math for yourself. I'll use myself as an example. Comcast is my local cable company and they have approached me about doing voice, video, and data for $99. In theory, that's $33 per service and it sounds reasonable, right?

Right now, my TV service is roughly $15 a month through Comcast, data service being about $55. Theoretically, this means that for another $29 a month, I can have phone service. Is this a good deal? No.

On one hand, I can get Voice over IP phone service from voip.com for $20 a month. It's cheaper. Also, if I were to change to their bundle, I would have to upgrade my cable TV service--I don't want the extra channels, thanks--and I'd have to downgrade my data service to a slower speed. Any savings I'd get by "bundling" would be wiped out by upgrading my data package to their highest tier.

There's another reason I would never go this route: I also need to have DSL Internet service at my house. Yes, for various reasons, I have both types of Internet service. In order to get DSL service through my local exchange carrier, I must have a landline with voice service.

Since I'm stuck using my local phone company's phone service anyway, my phone company has offered me a similar deal: bundle phone, Internet, and video service--to be provided over a satellite--for a similar price point. They do bundle my DSL and phone service, thus I do save $5 a month for that.

By adding video to this bundle, I would not be saving enough bundling my video service to offset the difference between what I'd have to pay for the bundle and what I pay now for video service. And, of course, to make matters worse, if I ditch video service on my cable service, I'd have to pay an extra $10 a month to Comcast.

I will admit, my particular situation is unique. Your particular situation is probably unique as well. The bottom line: look at all the options, including voice service from voip.com. Do the math for yourself.