7 March 2007
Britain has gone bundling mad with two-thirds of households already signed up to a bundled deal - where a combination of home phone, mobile, broadband and digital television services are all provided by one company.
Figures from the price comparison and switching website uSwitch.com have revealed that on average, bundling is saving households £124 each year by taking at least two communications services out with the same provider.
The benefits of bundling are clear to see: with a bundled service there's just one bill to pay each month, one telephone number for customer service enquiries and since you are paying the provider for more than one service, the standard of care they offer is usually better as the consumer is considered of a higher value.
Steve Weller, Head of Communications Services for uSwitch.com, warned that consumers should make sure they do their research before committing to a bundled service provider.
"A number of factors need to be considered before signing up to a bundle. Having 'all your eggs in one basket' may not be right for everybody," said Mr Weller.
"Contracts tend to be longer and if the company has a poor customer service reputation in one product area, it may impact on the other areas."
However, if consumers are prepared to 'do their homework', the benefits of a bundled service package can be enormous.
One example would be the fact that consumers who buy individual products from different providers can spend an average of £468 per year, but a bundle, such as the Virgin's "3 for £30" package, sees the annual costs fall to £360 per year resulting in a saving of more than £100.