Highlands Ranch resident Gary Lancaster switched last week from a Qwest bundle of home telephone, Internet and video services to a Comcast triple-play bundle.
Lancaster wanted a digital video recorder, and Comcast offered the feature without a $100 equipment charge.
“For $125 through Comcast, I get the exact same thing as I did through Qwest but I get HDTV (high definition television) and a DVR as well,” said Lancaster, who paid $133 for the Qwest bundle.
On the other hand, Lakewood resident Walter Johnson subscribed eight months ago to Qwest’s grand-slam bundle – which includes cellphone service – and said it allowed him to finally move away from the outdated dial-up Internet service.
“We added it all together and it was cheaper than what we were paying before, plus we got DSL (Qwest’s high-speed Internet service),” said Johnson, 63.
For many consumers in Colorado and nationwide, the high-stakes bundle battle between phone and cable companies means lower prices and the convenience of dealing with only one company and one bill.
By year-end, satellite-TV operators such as DirecTV and Echo Star Communications could join the fray in Colorado and other states by offering their own bundle of video and Internet services. The satellite-TV operators would offer Internet access through Greenwood Village-based WildBlue Communications, which provides high-speed Internet service via satellite.
But for now, most Front Range residents have two choices for bundles – Qwest or Comcast.
Qwest has 2.4 million traditional home phone customers in Colorado. Comcast has 800,000 cable subscribers in the state.
Which company offers the better deal on bundles?
It depends.
Because the bundles are comparable in price, the advantages vary based on an individual’s needs or preferences.
Qwest partners with DirecTV to offer a bundle of phone service, satellite-TV and high-speed Internet access through digital subscriber line, or DSL. The cost for a basic package in metro Denver is $96.97 a month, excluding taxes and other fees, and $86.97 in Colorado Springs.
Comcast packages its own digital voice product with cable-TV and high-speed cable Internet service. The cost for a basic Comcast bundle is $99 a month, excluding taxes and other fees.
Both companies guarantee their prices for 12 months. After the promotional period, Comcast’s $99 bundle goes up to $130 a month. Qwest says its price goes up to the current rate at the time.
The Comcast bundle is available only for new subscribers. The Qwest bundle is available to new customers and existing customers who add at least one service.
In general, for consumers who use their home phone quite a bit, are football fanatics or want to add cellphone service to their bundle, Qwest is the way to go.
But Comcast trumps Qwest, in general, for those who need faster Internet download speeds, enjoy watching movies and shows “on demand” and don’t want to deal with multiple equipment charges.
Specifically, the advantages of Qwest’s bundle include:
The reliability of its landline phone service, which isn’t dependent on traditional power lines. Comcast’s digital voice service is affected during power outages, but the company provides customers with a free eight-hour battery backup.
Qwest offers more pricing stability. The company’s DSL service remains at $26.99 a month for life, though it requires a two-year contract. The company’s basic phone service is fully regulated by the Colorado Public Utilities Commission and is price-capped at $15 a month.
Satellite-TV consumers can order special sports packages, such as the NFL Sunday Ticket, which gives them access to games that otherwise aren’t available in their markets.
Qwest has a grand-slam bundle that adds a fourth element – cellphone service that includes 500 anytime minutes – for an extra $27.99 a month. Comcast doesn’t yet offer the service.
“The reason I would buy from Qwest is the reliability, the experience, and when was the last time we raised our prices” on basic phone service? Qwest chief executive Richard Notebaert told The Post last month.
Comcast’s advantages include:
Faster Internet service. Comcast’s basic bundle offers downloads of up to 6 megabits per second. Qwest’s basic package offers download speeds of up to 1.5 mbps. Consumers can pay $5 a month more to bump the speed up to 3 to 7 mbps. But those faster speeds aren’t as widely available as the 1.5 mbps service.
Comcast cable has an “On Demand” feature that gives subscribers access to more than 6,000 video-on-demand programs, 95 percent of which are free.
The bundle doesn’t require any contracts. Qwest DSL customers have to pay $100 to terminate their two-year contract.
And its package is truly from one company, whereas Qwest has to partner with DirecTV for its video product.
“They’re all Comcast products,” said Comcast spokeswoman Cindy Parsons.
Cable companies have 7 million phone customers across the country, while the phone companies are still in the early stages of offering their own TV service, according to New Hampshire-based Leichtman Research Group.
“Cable phone service is available to over 65 million households in America,” said Bruce Leichtman, president and principal analyst for Leichtman Research. “While the telcos have put out a lot of press releases on video, it’s not widely available.”
Qwest has said that it may expand its IPTV, or Internet Protocol TV, which is available only in a few neighborhoods.
“A couple of years from now, if not sooner, we’re going to see a telephone company in our pay-TV study,” said Steve Kirkeby, executive director for telecom and technology for J.D. Power and Associates, market research firm.
While J.D. Power and Leichtman Research study the market penetration of bundles, they don’t rank the bundles.
For Comcast and Qwest, the bundles increase the amount of money they make from each consumer. More importantly, it decreases the chances that subscribers will switch providers because they are locked into more than one service with the company, analysts say.
“When you can reduce switching, it saves you a lot of money because you don’t have to continually get new subscribers to make up for those who are leaving,” Leichtman said.
The triple-play bundle push, which Qwest first launched in Colorado in May 2005, has worked thus far.
Nationwide, 43 percent of consumers say they have a bundle of services from one company, up from 33 percent in 2005, according to Leichtman Research.
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
The basics on the bundles
Qwest and Comcast offer basic packages of home phone, high-speed Internet and satellite or cable-TV services that are comparable in price. The bundles give consumers discounts on the three services for 12 months.
In general:
- If you want to watch NFL games that aren’t in your market, go with Qwest.
- If you want to watch movies and shows “on demand,” go with Comcast.
- If you want cellphone service in the bundle, go with Qwest.
- If you need faster high-speed Internet service, go with Comcast.
Each package has other advantages. Check with the providers for more details.
Comcast’s basic bundle along the Front Range is $99 a month. Call 800-COMCAST or visit comcast.com.
Qwest’s basic bundle is $96.97 a month in metro Denver, $86.97 in Colorado Springs. Call 888-807-4368 or visit qwest.com. Offers at these prices end Oct. 14.
