Why buy a bundled telco plan?

Australia’s broadband market is currently in the midst of a major transformation. The inexorable (albeit delayed) rollout of the National Broadband Network (NBN) has transformed the landscape, with the infrastructure-based dominance of the big companies such as Telstra and Optus beginning to lose ground to an army of smaller third-party providers and their value-heavy NBN plans.

Despite the rapidly changing competition, the products on offer have remained relatively consistent, and no product is more popular than a household favourite – the bundled phone and broadband plan. Even in a decade when mobile phones are increasingly replacing landlines, the combination of broadband internet and home phone subscriptions into one plan remains an attractive option for many households.

Canstar Blue recently surveyed more than 1,700 bundled broadband customers, and we found some interesting reasons as to why so many Aussies jump on the bundle bandwagon.

Cost and convenience are king

The big reason why home phone and internet bundles are so popular is as you’d expect – they’re better value. Just under three-quarters of all the customers we surveyed agreed that bundling products was cheaper than buying two separate services, with service providers often providing better value on bundles to encourage more customers to stick with their company’s services.

We also found that 60% of people switched to their current provider because they were offered a better deal, and moreover, these sentiments were consistent across both genders and all ages – you can’t argue, money talks!

A bundled phone and internet deal is also much more convenient than two separate services. Rather than having to pay two different bills, track two different usage meters, or even wade through the services of two different providers under the one roof, a bundled plan makes things so much easier – a godsend if you live in a busy household. Almost half of the Aussie customers we surveyed agreed that convenience was an advantage of internet and phone bundles. Whilst this might be less than you’d expect, it’s worth remembering that increasing numbers of people now opt for a naked broadband plan and no home phone at all.

Blurring the boundaries

The copper phone line has been a ubiquitous mode of communication for nearly a hundred years, but analogue voice calls are beginning to be phased out in favour of new technology. If you’ve got a decent broadband connection, you can use VoIP (Voice over Internet Protocol) to make phone calls over the internet, using your high-speed internet connection rather than old phone lines – it’s just like Skype or any other online phone service. All it involves is a regular phone handset which plugs into your modem, and it usually means higher quality calls at much cheaper rates due to a lack of line rental fees.

Whilst VoIP is still a little scarce on ADSL or Cable plans, it’s become almost ubiquitous on NBN internet deals. The NBN’s high speeds and huge potential bandwidth ceiling make it perfect for VoIP calls, and newer providers now bundle their NBN broadband plans with a VoIP call package. A single installation, lower costs and better quality calls means that the internet is fast becoming integral to the traditional home phone.

The home phone and internet bundle isn’t going anywhere fast, even as new and improved technologies begin to usurp it. Bundles offer superior value and convenience to most other communications plans, and they remain a favourite of households around Australia.

To find out more, check out Canstar Blue’s latest customer satisfaction ratings for phone and internet bundles.

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