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Broadband Choices

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Bundles vs Solo Suppliers

Single companies want every slice of your home entertainment pie; they want to supply your broadband, home phone line and digital TV - Virgin Media will even incorporate your mobile phone into their 4 for £40 bundle - but is bundling best or can solo providers offer equally competitive deals?

The biggest players in the market - those that offer the most price competitive bundles - are increasingly coming out at the bottom of surveys on customer service and technical support, while the relative minnows of the broadband market put more effort into the small but important details.

While companies like Madasafish (www.Madasafish.com) and Eclipse (www.Eclipse.net.uk) might not be able to compete against the big fish in terms of advertising budgets and immense customer bases, they are faring better than their competitors in consumer polls and have both won awards at the Internet Service Providers’ Association (ISPA) awards.

Smaller companies are becoming increasingly known for their commitment to customer service and technical support - as opposed to convergence giants like TalkTalk (www.TalkTalk.co.uk), whose well-publicised problems, although now much improved thanks to £15 million of investment, were ongoing for more than a year after launch, earning the company a bad customer service reputation.

So is it time to turn away from the once loved bundles, or do they still have something to offer consumers?

The benefits of bundling

Cost and ease are two of the major attractions to bundles. As well as offering up to four different services on one bill, they offer savings and “free” services for those who sign up to their offers.

Many companies now offer broadband with a phone line, and as local loop unbundling (LLU) has gathered speed more companies also include the actual line rental as part of their service too. However, the big money and major players are offering digital TV too, in preparation of the UK’s digital switchover which will began at the end of 2007 and will be completed in 2012 with the switching off of the last analogue signals.

The companies offering all three of these services as bundles are Sky (www.Sky.com), Tiscali (www.Tiscali.co.uk) and Virgin Media (www.VirginMedia.com).

Company Package Monthly Cost Need to Know
Virgin Media www.VirginMedia.co.uk TV, up to 2Mb broadband and home phone £30 per month No additional line rental
Sky
www.Sky.com
TV, up to 8Mb broadband and home phone £26.00 per month Still have to pay additional £11 per month line rental to BT
Tiscali
www.Tiscali.co.uk
TV, up to 8Mb broadband and home phone From £19.99 per month Line rental is included if you live in an LLU area

Benefits of going solo

Some aspects of bundle packages are not as competitive as they might seem. For example, call costs outside of your package on Virgin Media and Sky plans are quite high, so you could be better off taking your services separately, especially if you’re a heavy home phone user.

In terms of broadband, Virgin Media does regularly come out on top of our monthly speed test, but it’s the smaller companies that are getting the best reviews in terms of customer service and technical support - both major concerns for customers. Many people think that by going with a known name-brand they will get a superior service, however, many of the larger companies like Virgin Media and Orange (www.Orange.co.uk) charge premium rates for calling their technical support lines, at 25p and 50p per minute respectively.

And while big companies are shipping off their call centres to far-off destinations in order to increase profit margins, smaller companies are investing in theirs because they know that they can win customers by providing an above-average service - even if it costs a little more.

Solo suppliers bring value rather than just frugality to their products as consumers are begin to realise that you often get what you pay for so cutting costs can leave you lacking in service.

So what’s the answer?

How you choose your services depends entirely on your needs as a customer. If your focus is on digital TV but you want a home phone and broadband connection for light usage, then a bundle is probably the best answer for you. And Sky by far offers the best digital TV service - with all six of its entertainment mixes included in the Surf See Speak bundle - including the much coveted Sky One.

If broadband is your main priority, and you do want a bundle so that you can get a little extra on your TV, and have a home phone - that you won’t use much, then Virgin Media - which is currently upgrading its 4Mb broadband customers to speeds of up to 10Mb for free - is probably the best bundle option for you. Virgin Media won the BroadbandChoices.co.uk Gold medal for speed in 2007 in two categories; the welter weight for its 2Mb broadband and the heavy weight category for its 20Mb broadband.

Also, if you spend hours on the phone then you might be better off getting a call package, and even line rental, from a cheaper provider, you could save on the overall cost, and you will definitely make a saving on call charges.

Here are some of the call costs you can expect to pay with the bundle providers:

Company Inclusive calls Example - Calls to Orange mobile Example - Calls to landlines, Australia Need to know?
Virgin Media www.VirginMedia.co.uk Free local and national calls at weekends 15p per minute daytimes, 10p in the evening 26p per minute at all times 7p call set up fee
Sky
www.Sky.com
Free local and national calls at weekends 11.88p per minute daytimes, 7.13p in the evenings 22.8p per minute weekdays, 9.5p at weekends and evenings 6p call set up fee
Tiscali
www.tiscali.co.uk
Free local and national calls at weekends 12p per minute daytimes, 7p in the evenings 19.2p per minute weekdays, 7.2p at weekends and evenings 6p call set up fee
Post Office Broadband
www.PostOffice.co.uk
Free weekend calls and inclusive line rental 13p per minute daytimes, 8p in the evenings 5p per minute weekdays, 5p at weekends and evenings 3p call set up fee

What’s available?

However, if you want the best value broadband, television and phone service, then you might be best taking separate providers for all three.

Click here to use our calculator to Compare Broadband Packages, including bundles.

Or check out HomePhoneChoices.co.uk for the best deals on home phones and line rental only, and DigitalChoices.co.uk for the best digital TV products, including bundles.


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Page Last Updated: Tuesday, 6-May-08