People everywhere are looking for ways to save money in their everyday lives. One of the first casualties of the family budget is the cable television or high speed internet service. The cable industry is aware of this, and has created packages to make their products appear more affordable and beneficial to maintain on a limited budget. The packages, called service bundles, include home phone service, cable television and high speed internet. The question is, do these bundle services actually save the family any money?
Home Phone Service
For many families, home phone service is no longer needed. Cell phones are affordable and portable, giving greater access to loved ones. With unlimited long distance included in most plans, the need for a traditional home phone service is often unnecessary. The internet offers many websites and services that will allow users to connect their computers together and speak without requiring any additional costs. Video and voice chatting programs let you see and hear the person you're speaking with from anywhere in the world. Traditional phone services do not provide this service.
If a family feels the need for a home phone service as part of their cable bundle, the cost per month averages $30 for the first six months to a year, increasing to $50 for the remainder of the two year contract. That works out to an average of $1080 over two years for home phone access as part of the bundle.
High Speed Internet
High speed internet has become one of the staples of American life and entertainment. From streaming movies and television shows to video games and online content, the internet has changed the way that people go about their daily lives. The need for faster and faster speeds as more becomes available online has led to a shift in how cable companies price their internet plans.
Depending on the upload and download speeds, these costs can vary widely. Prices range between $50 per month and $200 per month, depending on the speed of the internet desired. When working with a bundle, they provide one type of service at a reduced rate. For most bundles, the price for internet averages $30 for the first six months to a year. After that period, it increases to the normal price average of $60 per month. This means that high speed internet over the two year contract of the bundle would cost the consumer $1260.
Cable Television
Similar to high speed internet, cable television packages have certain channels packaged together for a price. The more channels one has, the more the cost. Premium channels have a monthly fee associated with them, in addition to ones monthly cable package for bundled channels. Depending on the viewing habits and needs of the consumer, cable television can range anywhere from $20 per month to $140, plus premium channel costs.
The average price for the bundle including cable television is $30 for the first six months to a year. After that period, it increases to the regular price of $60 per month on average. This brings the two year total for cable television to $1260.
Cancellation Fees
Cable companies know that people will sign on for a service during the reduced bundle rate, then try to cancel parts of the package, or the entire package. Knowing this, many companies include cancellation fees in the language of the agreement. These fees vary widely by company, from $50 per item to $500 per item. Some have a requirement that the consumer must pay the next three months value of the bundle, or the remaining time balance, whichever is less. These fees can be expensive for a family trying to save money.
There is a way around the fees for persons who move. If you end up moving to a location that is not serviced by your existing provider, they will release the remaining contract for no fee, provided all equipment is returned within 30 days.
Summation
For the average family, getting phone, internet and cable television for $90 a month, even for a limited time of six months to a year, is a great way to save money. When the costs increase to the average of $150 per month, families must decide if they can afford the monthly rate, or if the cancellation fee is workable on their budget.
Before entering into any bundle agreement, know what products and services you need and can afford. Ask what the cancellation process is and what the rates increase to. This will help keep a family budget in line with expenditures. Don't purchase a service that you don't need simply because it will reduce the bill for another service you want for a period of time. In most cases, the consumer is better off with the basic needs at full price, or a slightly smaller package for cheaper, than using a bundle.
Prices used in this article effective as of November 1, 2011. Prices subject to change based on company and location.
Sources.
CenturyLink/Qwest. (2011). CenturyLink/Qwest Local Products. Retrieved 1 Nov 2011. CenturyLink website.
Comcast. (2011). Xfinity from Comcast. Retrieved 1 Nov 2011. Comcast website.
Time Warner Cable. (2011). Time Warner Cable. Retrieved 1 Nov 2011. Time Warner Cable website.
Shannon Webster - I have over a decade of experience working with government and financial companies. I enjoy politics, sociology, technology and ...
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