Canadian Capitalist

A Canadian Personal Finance Weblog

Is Bundling a Good Deal?

June 21st, 2005 · No Comments

Phone and cable companies offer a rebate for bundling services like wireless, internet and TV (cable or satellite). For example, Bell Canada offers $5 off each service in a bundle that includes satellite TV, high-speed internet and wireless. However, there is a catch: agreeing to bundle services means a 2-year agreement for each service with stiff penalties for early termination.

In my opinion, these bundles are a poor deal for most consumers. Giving up the option to demand better service or more competitive pricing from the service provider is not worth the discount received with the bundle.

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