Many telecommunications providers offer you deals, rewards and discounts if you subscribe to more than one of their services. For example, you may be offered a discount on your home phone account, if you agree to use the same provider for your internet or mobile connection. This practice is known as 'bundling'.
While it can be convenient to have all or several of your services provided by the same company, check that the package you are being offered meets your needs and saves you money. While it can be confusing to compare different packages, if you take your time, you have a good chance of finding a package that is right for you.
What do I need to be aware of?
Before signing up for a bundled service, there are few issues you should consider.
Do you really need the extra services?
Do not pay for services you will not use
Will you save money?
Bundled packages can be difficult to compare and bundling your services will not always save you money. Checking your recent bills to establish your typical monthly costs and usage patterns can be a good starting point.
Do not be pressured into saying yes!
If someone offers you a package that appeals to you, do not feel pressured to agree on the spot. Ask for the offer in writing and take some time to check if the arrangement matches your needs.
What time commitment suits you?
Some bundled arrangements might have a time commitment attached. Do not lock yourself into a long-term contract if this does not suit you. Be aware if any costs apply for early exit.
Are there hidden costs?
Does the bundled package does have extra services charges, more expensive local calls, or fees for exceeding your download limit?
Remember to consider your existing commitments
If you need to switch providers so you can take up a bundled arrangement, be sure to check if you have to pay to cancel any service contracts you have with your existing provider.
When is bundling a problem?
Bundling can provide many benefits, however, bundling may be detrimental for consumers when it is used to reduce or restrict competition. If we consider a bundling arrangement is squeezing out competitors or giving a provider too much market power, we can take action under the Trade Practices Act.
