Cable internet providers say bundling saves bundles
July 31, 2009
The cable industry has released a report saying that consumers who buy bundled broadband internet, cable and voice services are getting a huge benefit, to the tune of $35 billion annually.
In a study released by the National Cable & Telecommunications Association (NCTA), cable internet providers said they based the dollar figure on "incorporating the positive impact of bundling multiple services, which has allowed providers to exploit economies of scale
and resulted in lower prices for consumers."
About 60 percent of cable customers subscribe to broadband internet service, while 26 percent subscribe to digital voice service. The triple-play bundle of digital video, broadband and digital voice service provides the greatest opportunity for consumer savings, NCTA said.
Another recent study suggests consumers are indeed a premium for buying broadband internet separate from other services.
The Pew Research Center's Internet & American Life Project reported that the average monthly bill for broadband internet service has gone up since last year, from $34.50 to $39.
The Pew survey also found that Americans who reported more choices of providers paid less than those with just one available provider.
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