Bundled communications deals gain favour

LONDON - Consumers are increasingly buying bundled internet and telephony packages, according to Ofcom research.

Ofcom: discounted communication packages becoming more popular with consumers
Ofcom: discounted communication packages becoming more popular with consumers

The regulator's annual Consumer Experience report shows the number of consumers taking bundles - often mobile phone and fixed-line telephony, or triple TV, telephony and Internet deals - is up by 5% year on year. More than 10% of consumers have also found it easier to compare costs in the bundled market, compared with 2008.

In 2008, 35% of consumers took a discounted bundle deal compared with 30% in 2007. The research also found that some consumers could make significant savings by taking some or all of their phone, pay TV and broadband services from the same provider. Typical communications baskets for some groups of consumers revealed possible savings of between £88 and £140 a year. 

The report shows consumers are not switching communications providers as much as they do with their energy and car insurance providers. It found an 11% reduction in the proportion of consumers switching providers for bundles in the past 12 months.

When consumers do switch, two-year contracts are becoming increasingly popular as consumers commit to longer periods, but in return for lower monthly fees and inclusive, or heavily discounted, handsets.

In the third quarter of 2009, 42% of new mobile contracts were for 24 months or longer, compared with only 5% a year previously.

 

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