why do cable internet companies offer discounts when bundling with phone/tv? They offer the bundles cheaper than the plain internet

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As asked, often a bundle is cheaper. I know after a year the rates go up but at that point cancel the bundle and keep just the internet.

Do they get government kick backs by offering phone? Is it for compliance? Anyone with knowledge from the policy side of it?

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Anonymous 0 Comments

It’s not for compliance and they don’t get government kickbacks for signups. In areas where Internet service doesn’t meet the standard (25/3 Mbps currently) government offers subsidy to build or upgrade the network. It also requires to offer phone service if subsidy is received. But subsidy is provided to build, expand, or upgrade the network not for individual signups.

Phone over cable is basically VoIP. It costs far less to support than the cable companies charge. Ooma offers basic VoIP service for free. Phone and cable Internet bundle is cheaper because fewer people cancel phone service than keep it. Also in the long run people with bundles are less likely to switch to a competitor.

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