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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