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SoutherDem (324 posts) Profile Journal Send DU MailWhy Does The Cable Company Also Want To Be Your Phone Company?If anyone has any insight into the workings of the cable industry, I have a question; Why is it cheaper to include a phone? My last cable contract ended last month so I started looking into the best deal for me. Briefly, both AT&T and my local cable company are offering better packages if I include a phone which I will NEVER use. As an example from the local cable company for almost $30 less per month than I am currently paying now, I will keep the same channels which I currently get plus I would get HBO, my internet is increased from 20mb to 30mb and I get a phone, the next best offer without phone, an increase in internet speed or HBO would save me less than $10 per month, the only way to save the same amount I would have needed to decrease my internet speed. Why?
jtrockville (4,213 posts) Profile Journal Send DU Mail1. It's an introductory offer, right?After a year, they're hoping you want to keep the service and they'll soak you.
SoutherDem (324 posts) Profile Journal Send DU Mail5. That is what I thought but...I have been with this company for several years, if I stay with them I am getting more for less.
jtrockville (4,213 posts) Profile Journal Send DU Mail13. Maybe to starve out the competition?Does your "phone" company provide "cable" service (like Verizon FiOS)? Maybe the cable company just wants to steal away all the customers?
SoutherDem (324 posts) Profile Journal Send DU Mail16. I don't have a phone company but...if I did it would be AT&T, and yes this deal comes just as AT&T introduced Uverse in my area and yes it better fits my needs than comparable AT&T packages or prices.
LiberalAndProud (7,744 posts) Profile Journal Send DU Mail17. I tried it.Moved my land line to VoIP with my internet provider. Great deal for the phone. Until they changed the price for the phone. What I signed up for at $25/month (don't recall the initial offer, to be honest, but it was cheap) was soon being billed at $110/month. When I called to cancel VoIP, they asked me if I'd keep it if they reduced the price. I said, "Too late, no thanks."
Edweird (7,390 posts) Profile Journal Send DU Mail2. For the same reason fast food restaurants push combo meals.
SoutherDem (324 posts) Profile Journal Send DU Mail15. But I am going to trash the "fries"I understand at McDonalds when you go with the combo, they charge you more (but less than ordering each item individually) and that they are making a lot more off the fries and drink than the sandwich. In this case the big mack costs $4.99 but the whole combo is only $4.50.
Lone_Star_Dem (23,294 posts) Profile Journal Send DU Mail3. For the same reason they want to be your ISP.The more services you have with them, the more likely you are to want to pay your bill to keep at least one of them on.
SoutherDem (324 posts) Profile Journal Send DU Mail18. This is true...if I was short on money one month I may allow the TV to be turned off but not the internet.
msongs (24,312 posts) Profile Journal Send DU Mail4. so when they jac k up the cost of your bundle you are screwed
Pharaoh (5,835 posts) Profile Journal Send DU Mail6. fiber optics and technologyit literally cost them nothing. But it is market share. Once the big boys crush the competition, expect prices to rise.
customerserviceguy (12,124 posts) Profile Journal Send DU Mail20. Yep, same reason WalMart has such low prices when they invade an areaDrive out Mom and Pop, and you can charge the yokels anything you want.
Yo_Mama (1,771 posts) Profile Journal Send DU Mail7. Because people are tightening their belts, so the best option for most service companiesIs to get you to swap other services for their services. People are looking to cut all recurring bills. Companies can't expand with pricier packages, so they are trying to get consumers to sign up for more services to expand their revenues.
southernyankeebelle (2,548 posts) Profile Journal Send DU Mail8. In my rural area we have a co-op. We get our internet and phone through them. After some many years they send you a check for being a member of the co-op. I have Direct TV. I wouldn't change it. I feel like I get good service.
FarLeftFist (3,917 posts) Profile Journal Send DU Mail9. Monopoly.
gateley (54,550 posts) Profile Journal Send DU Mail10. The same answer for every question -- Money. I don't know how they'll benefit specifically, but you can bet they will otherwise they wouldn't be offering this. They are for-profit corporations, and they would not do anything that didn't add to their bottom line.
SoutherDem (324 posts) Profile Journal Send DU Mail12. I am sure they are making money (and lots of it)it just seems odd for me to get more for less, especially from a cable company.
gateley (54,550 posts) Profile Journal Send DU Mail14. Yeah, I know what you mean. But even though WE don't see how it adds to their coffers, I am absolutely positively convinced that it does.
mmonk (45,373 posts) Profile Journal Send DU Mail11. The same reason banks want to be stock brokers.
napi21 (39,261 posts) Profile Journal Send DU Mail19. I assume it's to gain market share against the phone co. When my 2 year contract was up with the cable co. about 6 months ago, they offered me aq similar deal. I was getting more & more aggrivateed with the phone co. so it wasn't a real hard sell on their part. Changing saved me money, and I don't have to put up with all those stupid add-on charges the phone co. was so good at adding. So far, I have no complaints, and with phone service via cable, you can call anywhere in the US at no additional charge.
whistler162 (4,211 posts) Profile Journal Send DU Mail21. Same reason the phone company, Verizon, wants to be your cable company!$$$$$$$$$$$$$$$$$$$
tabbycat31 (3,982 posts) Profile Journal Send DU Mail22. they want to keep home phones from becoming obseleteMine keeps sending me offers for a phone line and they're just wasting their time and money. I have a phone already, and do not need another.
jmowreader (20,815 posts) Profile Journal Send DU Mail23. They're trying to put the phone company out of businessIf you get your TV, phone and Internet from the same place (and so far I have NO idea why they don't have TV, landline, cell and internet bundles) you don't do business with a different company. Their intent is to convince so many people that CableCo phone and internet are wonderful, that the phone company dies. At the same time, the phone company is trying to do the same shit. It won't happen, but that's what they want.
applegrove (50,356 posts) Profile Journal Send DU Mail24. In Canada one of the cable companies is giving away free computer tablets if you switch your phone and cable to them. Why they must make over a thousand a year off of their subscribers.
Historic NY (16,210 posts) Profile Journal Send DU Mail25. I just got a call earlier this evening same thing I don't want it my phone is hard wired...which means it will still work when the cable is out....they don't get it but thats the answer I always give them.
sylveste (134 posts) Profile Journal Send DU Mail26. that's not necessarily true,i have a bundled service and at various times the cable is out but the phone still works, or the internet is down but the phone and cable still work in fact i've had every combination possible at one point or another.
kenny blankenship (13,845 posts) Profile Journal Send DU Mail27. The real mystery is why neither wants to provide good service for a decent priceUh hang on, they are a uncompetitive duopoly, just like Democrats and Republicans. On second thought, it's not mysterious at all.
SoutherDem (324 posts) Profile Journal Send DU Mail28. I agree with the duopolyWhen I was with this company years ago I received horrible service. They missed service appointments by hours if not an entire day. I then went with a satellite company for my TV, cable didn't offer anything else at the time. Years later I gave them a try for internet only then went back to TV too. Surprisingly enough for 3 years, one internet only and two more with TV also, I have had great service. Once my DVR died a service tech was on site within an hour of my call, he ran all new lines thinking that was the problem but once it was determined it was the box a second tech was on site within a few minutes with a new box. Total outage less than 3 hours (including a phone rep talking me through a reset) and no additional cost to me. For now I am getting great service and a better price than any one else is willing to offer, for now, even if I have a phone I never use.
RebelOne (21,802 posts) Profile Journal Send DU Mail29. I have a bundled plan through Comcast.Phone, Internet and Cable TV and I am very happy with it.
Only in the western world can a bunch of people who cry poverty at every turn , find a reason to bitch and moan about DIGITAL QUALITY entertainment services TO BE PLAYED ON THEIR 60-INCH HDTV HOME THEATER SYSTEMS.
