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

They are hoping you *won’t* cancel and downgrade to an internet-only plan after a year so after the promotional pricing expires, you end up paying more for all the bundled services.

It also helps steer customers to more expensive services like higher-speed internet. For example if basic internet is $50 and high speed internet is $100 you might choose basic internet. But if you can get high-speed internet and cable and phone for $80 that suddenly looks like a good deal. In reality, you’re paying $30 more than you would have otherwise, it probably costs the company little or nothing to provide those extra services (especially if you didn’t want them and won’t use them) but the whole package looks like a deal. That’s the nature of “promotional” deals, they are trying to draw you in as a new customer and get you to sign up for something that might be expensive long-term. This is one of the many strategies, just like promotional pricing that expires after a while, that they use to do this.

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