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Consumers Shun Bundled Broadband Deals?
By: MarkJ - 27 February, 2007 (1:41 PM)

Comparison site firsthelpline.com has revealed the results of its latest study into consumer trends and broadband ISP's. It's suggested that people are increasingly resistant to broadband bundled (+voice, TV, mobile etc.) deals:

Recent switching data shows that consumers are failing to sign-up to deals that offer bundled services including broadband, mobile phone, digital television and landline. firsthelpline.com’s analysis shows that while 77 per cent of switchers chose to view bundled offerings, only 28 per cent of these follow through to apply for a bundled deal.

Consumer demand isn’t matching the marketing noise. Our information shows that although consumer interest is on the rise, switchers still fail to take up bundled offerings,” said Aamir Baloch, director at firsthelpline.com. “It seems consumers are shying away from the propaganda, and aren’t showing the appetite for bundled deals the providers would like them to.

While there are obvious benefits of signing up to bundled deals, such as great value and the convenience of one bill, consumers are weighing these up against the disadvantages of putting all their eggs in one basket and longer contracts.

Broadband bundling battle moves to TV

The latest broadband bundled offerings now include TV from Sky, Virgin Media, BT Vision and Tiscali’s Homechoice, scheduled for re-launch as Tiscali TV this Thursday, March 1, 2007. These launches suggest that the large providers are banking heavily on multi-play service offerings.

The broadband battle is steadily moving into TV, as companies wage war for control over our home screens. Clearly the onslaught of bundled offerings shows no sign of slowing. Competition is now forcing BT to play its hand as well. With Virgin, Sky and now Tiscali all making strong plays for the TV/Broadband market, BT cannot afford to wait and will no doubt re-launch BT Vision soon, further building on the bundling hype.

To be fair bundled promotions have gained a lot of interest and customers over the past 12 months, something that has helped to drive local loop unbundling (LLU) based broadband and voice products.

We suspect that the growing number of deals has created a wider choice of offers for consideration and it’s only right that people take the time to consider everything. The bad press surrounding network congestion, support and service problems of some cheaper alternatives has also added a degree of risk.

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