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Can You Save Your Business Money By Bundling Telecommunications Services?

Sep 05, 2018

A menu at a fast food restaurant features a cheeseburger combo with french fries and a drink. Diners may purchase the foods individually, though some quick math reveals a smaller price as a combination than if each item were sold individually.

In a store’s electronics department, customers can buy a video game console with a popular game pre-installed. Certain video game manufacturers may delay the release of that popular game for individual sale in order to spur customer interest in the console.

These represent a few examples of bundling. In this approach, businesses offer their wares as a group, or bundle. These bundles typically fall into two categories. Under the “pure bundle” approach, customers can only buy the whole rather than the parts. In many cases, a business presents a “mixed bundle,” which means that customers can buy one or more of the items as individual units or opt for the bundle.

Telecommunications providers offer bundling of services to residential and business customers. For companies striving to save money, bundling telecommunications may represent a less costly route to reducing the costs of doing business.

How Does It Work? Bundling Telecommunications

In the telecommunications realm, a bundle combines Internet, phone, and cable or satellite television into one price. In other words, the telecommunications provider sells the services as a single unit rather than individually. To market bundles, the providers sell the whole for less than the sum of the individual services. Bundles may also come with web-based email, so that the ability to check company email is not tethered to a singular computer at the office. Other packages may include cloud storage for videos and other large data content.

Having a single provider for telecommunications services reduces administration costs for the business. With the single bill as opposed to multiple ones, the company has one due date to handle for telecommunications needs. Using separate providers would mean different due dates and schedules, multiple checks and additional time devoted to paying bills.

Further, the company need contact only one entity to handle service or equipment problems.

The Checklist: What You Need to Bundle Telecommunications

Television, Internet and VoIP phones run on coaxial cables in many cases. Consideration of bundling means understanding what preparations the place of business must have to receive telecommunications. Businesses contemplating bundles must also decide what parts of the bundle their particular establishment need.

Cable Outlets: Businesses may have to pay installation fees to get the connections for bundled -- or even individual -- telecommunications.

A Need for Television: Most businesses use and rely on telephones and Internet to communicate with customers or vendors, but not all companies need cable or satellite TV. Non-public places, such as plants and distribution centers, usually do without. In restaurants, the cable or satellite service affords sports or other entertainment to diners. Dentists, eye doctors and physicians may have televisions that deliver information especially tailored to the practice rather than a traditional cable or satellite package.

Questions and Answers:

Q. Does the bundle pricing stay the same?

A. Some telecommunications companies might offer the bundle as an introductory price which lasts for a particular period of time. Upon the end of the special offer term, the provider may choose to raise the rates.

Q. Is there a commitment period?

A. Depending on the provider, businesses may have to keep the package for a minimum time, such as two years. Early termination comes with fees and penalties.

Q. Is there a place to find bundling packages for business?

A. The site BROADBANDNOW.COM allows visitors to type in a zip code for available Internet service providers in an area. The companies will advertise their business bundles. Also a simple internet search engine search may yield results for telecommunications companies and bundle offers in the area.