Need advice? Call our experts free on
0800 090 1342
Study finds broadband bundles are as popular as standalone deals
Double and triple bundles are now chosen just as often as standalone broadband deals, according to Strategy Analytics.
The market intelligence firm's Fixed Broadband Price Benchmarking Service conducted an analysis of residential packages in 40 countries and found that double and triple-play bundles are just as popular as one-off broadband lines.
Based on a study of products offered by 133 internet service providers (ISPs), the research also discovered that the average-priced broadband, TV and landline bundle costs an additional to (£12.60 to £15.70) per month in purchasing power parity (PPP) above the standard amount for an unbundled internet connection.
Strategy Analytics claimed the PPP cost for triple-play services stands at , while the typical rate for an unbundled line with a minimum speed of 45Mbps is .
Josie Sephton, author of the report, said bundled packages are generally more expensive than their unbundled alternatives, but noted there are some exceptions to this rule.
These can generally be found when alternative communications providers - such as cable companies - deliberately set unbundled prices higher in order to encourage consumers to sign up for a wider range of services, she explained.
"Bundled offerings are designed to create greater customer stickiness, presenting better upsell opportunities. ISPs, meanwhile, continually need to investigate delivery and pricing to retain current and attract new customers," Ms Sephton added.
UK cable company Virgin Media's latest financial report, covering the final quarter of 2011, showed that 86 per cent of the provider's customers are signed up to double and triple bundles, while 63.7 per cent are on triple-play packages.
This trend is replicated at Sky, with more than three million households subscribed to all three of broadband, telephony and pay TV in the three months to December 31st 2011, up by 26 per cent year on year.