New research from Strategy Analytics has revealed that bundled packages, in the form of double and triple play, are now as prevalent as standalone offers, and actually more often than not to the detriment of customers.
Indeed, according to The Rise of Multiplay Services, the average price of bundled broadband, TV and phone in the US is costing consumers an extra $20-25 in purchasing power parity (PPP) per month over and above the price of unbundled broadband.
The analyst calculates that the average monthly PPP cost for unbundled broadband with a minimum speed of 45 Mb/s is $55, while the PPP cost for triple play services – those incorporating broadband, fixed phone and TV as a single packaged offering – is about $76.
Commented author and Strategy Analytics senior consultant Josie Sephton: “While bundled services are generally more expensive than unbundled, there are exceptions to this rule, typically occurring when alternative providers, like cable companies, price unbundled choices higher than bundled packages in order to steer customers toward a wider range of services. 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.”