Bundling Gone Bad

So a person has a home phone, cable, Internet, and a cell phone.  Itemized, the monthly costs are*:

Home Phone	$45
Cable	$86
Internet	$30
Cell Phone	$99
Total	$260

Bundling puts the home phone, cable, and Internet (including the cell phone with some companies) on one bill and offers the customer a discounted price**.  Instead of the total cost being $260 for the total services as separate bills, the entire bill could be something like $190.  Who wouldn’t want to save $70 a month for the same services?  That’s the smart way to go.

The downside on bundling is that when times are tough and that one bill can’t be paid, EVERYTHING is disconnected. 

As soon as times look like they might get tough, i.e. layoff notice, termination, resignation without something to replace that income, increased healthcare costs and bills, major car repair, and the like, immediately call up the service provider and unbundle all services.  The costs will go up, but the consumer is back in the driver’s seat to pick and choose what can stay and what can go.  If something needs to be scaled back or get disconnected, it won’t affect the rest of the services. 

Bundling may have contractual terms.  Be sure to read each and every line and understand the terms of having bundled services before signing up for the program.  Be sure to get the terms in writing – don’t just rely on what says the customer service rep.  Know if there are any unbundling penalty and/or cancellation fees and when they would incur.   Any unpaid fees (and equipment not returned) are immediately forwarded to collections and eventually becomes noted on credit reports where the notation will remain whether the fees are paid or not.

*Dollar amounts indicated for example purposes only and do not reflect or is associated with actual costs or charges from any communication services provider.
**Bundling can also include energy utility services, however this post is specific to communications bundling.