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Bundle Up & Save

1:00 PM -- From The Philter's Bundles of Joy file, comes the following snapshot for consumer voice, video, and data bundles offered in New York, San Francisco, and Pittsburgh.

Keep in mind, these prices, acquired a few weeks ago, are just a snapshot and don't factor in any holiday offers or seasonal price drops. Also, we only called up major providers, no small guys.

Our point? Really we were just trying to see what the predominant price point for bundled services is these days in a world where Verizon Communications Inc. (NYSE: VZ)'s FiOS and AT&T Inc. (NYSE: T)'s U-verse aren't yet competing.

Our findings aren't really surprising. First, as discussed before, buying services individually is a bit more expensive, but the prices are steadily dropping, so it makes more sense now than ever before.

Finally, if new, next-generation services aren't hitting a price point of below $100/mo. AND giving consumers something they don't already have (and can't get), then they will lose.



In a future post I'll look at FiOS and U-verse to see how they measure up to other bundles.

In the meantime, please feel free to add your own data in the boards below.

Table 1: San Francisco, 94107
Provider Package Intro Price Regular Price Comments
Comcast Triple Play $99.00 $139.80 Includes standard high-speed cable modem service, which features a whopping 6 Mbit/s downstream and 384 Kbit/s upstream bandwidth. Standard digital cable service, with over 100 channels, is included. The intro price expires in 12 months.
Verizon Bundled Package n/a $113.68 DSL Details: 3 Mbit/s downstream, 768 Kbit/s upstream; If you choose the 1.5 Mbit/s downstream option, it lowers cost to $108.68. If you downgrade, again, to 768 Kbit/s the cost drops to $101.68/mo. Upstream bandwidth is always 768 Kbit/s in this zip code using Verizon DSL. FiOS is not available in San Francisco, so you must order DIRECTV through Verizon. There is a one time connection fee of $19.99 for the DSL. The only package deal is to take $6 off the price of DIRECTV when ordering DSL and phone service.
RCN Cable Triple Play $90 - $97.50 $105 - $112.50 Includes cable modem with service of up to 5 Mbit/s downstream bandwidth and 384 Kbit/s upstream. The $90 service includes basic cable while $97.50 price includes digital cable. Intro price is for 12 months and then regular price sets in.
Sources: Company data and Light Reading reports


Table 2: New York, 10013
Provider Package Intro Price Regular Price Comments
Time Warner Cable Intro Triple Play $99.95 $114.95 The high-speed Internet portion of this triple play package is actually much slower than regular cable modem service (the triple play speeds are up to 768 Kbit/s, 128 Kbit/s upstream). Intro price is for 12 months.
Time Warner Cable All-in-One Triple Play Package n/a $129.95 Includes standard high-speed cable modem (up to 5 Mbit/s downstream, 394 Kbit/s upstream). Package also offers 100 more digital TV channels than Intro Triple Play package.
Verizon Bundled Package n/a $103.93 Does not offer Triple Play "package" by name. Voice, Internet, and TV services must be ordered a la carte. TV service is actually DIRECTV satellite, resold by Verizon. FiOS is not yet available in this New York zip code. Pricing for this package is based on DSL service of speeds up to 1 Mbit/s to 3 Mbit/s downstream and 384 Kbit/s upstream. A slower service of 768 Mbit/s downstream and 128 Kbit/s upstream is also available which would reduce package price to $88.89/mo.
Sources: Company data and Light Reading reports


Table 3: Pittsburgh, 15213
Provider Package Intro Price Regular Price Comments
Comcast Triple Play $99.00 $139.80 Includes standard high speed cable modem (up to 6 Mbit/s downstream and 384 Kbit/s upstream). Standard digital cable service included with over 100 channels. Intro price is for 12 months.
Verizon Bundled Package n/a $113.68 DSL Details: 3 Mbit/s downstream, 768 Kbit/s downstream; a slower DSL service (1.5 Mbit/s downstream) lowers cost to $108.68. An even slower service (768 Kbit/s) lowers the cost to $101.68. Upstream speed is always 768 Kbit/s on all packages. FiOS is not yet available in this zip code so you must get DIRECTV through Verizon. There is a one time connection fee of $19.99 for the DSL. The only package deal is that they offer is to take $6 off the price of DIRECTV when ordering DSL and phone service.
Sources: Company data and Light Reading reports


— Phil Harvey, News Editor, and Ray McConville, Reporter, Light Reading

Michael Harris 12/5/2012 | 3:31:44 AM
re: Bundle Up & Save When Cablevision became the first MSO to offer an under $100/mo three-service bundle two years ago, other cable operators were incredulous. "Why so low, so fast?" they asked. To stick it to Verizon before they could deploy fiber, of course. Now the $99 or-less price point rules the day for cable. Thanks for the run-down Philter.
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