Consumer Reports: Fiber-Optic Providers Are Leading Choices for Internet, Television, and Telephone Service

YONKERS, N.Y., Jan. 5 /PRNewswire-USNewswire/ -- Consumers looking to cut costs without sacrificing satisfaction for Internet, television, and telephone service should consider bundling with Verizon FiOS or AT&T U-verse. In Consumer Reports' latest survey of major telecom providers and bundled services, featured in the February issue, Verizon FiOS and AT&T U-verse, whose networks are fiber-optic based, were the most consistently satisfying providers for their Internet, television, and telephone services.

Because Verizon FiOS and AT&T U-verse are not available everywhere, many consumers must consider other options for Internet, phone and TV services. The article also includes Ratings of these three services, which are typically bundled, from various providers.

In areas where telco-delivered service is not available, a highly-rated cable company is the next-best choice for many households. Consumers may not have an option when choosing a cable provider because a majority of homes only have one cable company available in their area. According to Consumer Reports' survey, better cable companies include Cox, Cablevision and the smaller Bright House and Wow, which are fine alternatives to fiber-optic service providers for all three services in areas that they are available and also offer Internet and telephone services.

If television service is a priority and fiber-optic service isn't available, satellite service may be a fine option. Consumer Reports suggests opting for a bundle that includes DirecTV. It scored higher than all the major cable companies and Dish Network, the other major provider of satellite service, for TV picture, sound and channel selection. It is also offered in hybrid bundles along with DSL Internet and landline phone service from some telephone providers.

Bundling Prices Decline

Intense competition for cable and satellite customers between AT&T U-verse and Verizon FiOS high-speed fiber providers has driven down rates for Internet, phone and TV service and is likely the reason that companies allow these savings to continue past the promotional period. In the past year, bundles of the three services have dropped in price by up to 20 percent, to as low as $80 a month.

Bundling makes sense for many households, especially for those consumers who are served by one of the fiber carriers or one of the better cable companies. Consumer Reports' latest survey found that subscribers were very satisfied with Internet, phone and TV from the best telecom providers. However, bundling doesn't come without some problems. The survey revealed a high incidence of complaints about billing, and fees with some providers' triple-play packages. Despite its high marks overall, Verizon FiOS was below average for customer service to its triple-play customers. Cable companies that bundle services had fewer customer-service problems overall.

How to Choose

    --  Check alternatives.  Only a small percentage of homes have two cable
        companies to choose from; most only have one.  Satellite is more widely
        available, provided a home has an unobstructed view of the horizon to
        the southwest.  DSL is widely available in urban and suburban
        neighborhoods.  While fiber-optic service, such as Verizon FiOS and
        U-verse from AT&T, is spreading fast, it is still only available in
        about 8.5 million homes in about one-third of the states.
    --  Weight the case for bundling.  With most providers, signing up for more
        services equals more savings.  Bundles allow for integrated services,
        such as display of callers' phone numbers on the TV screen, which
        is offered with some phone/cable packages.  Triple-play offers often
        come sweetened with more extras, such as free installation.  Consumers
        may also be guaranteed low rates for a longer period of time with
        triple-play than when subscribing to services one at a time.
    --  Don't rule out a la carte.  Taking fewer than three services from
        any one provider allows flexibility.  Spreading service among a few
        carriers also eliminates the possibility that a network or equipment
        failure will knock out all telecom services.  Although bundles usually
        ensure maximum savings, Consumer Reports found at least one instance
        where the cost of the service taken individually was actually lower than
        when it was part of a package.
    --  Consider phone safety.  Cable VoIP and fiber phone service require a
        battery back-up to use during power outages.  These battery backups may
        be provided or have to be purchased for an additional fee. 
        Additionally, if an outage lasts longer than the battery backup,
        consumers may be left without a phone for the remainder of the outage. 
        Emergency 911 service varies among technologies.  Consumer Reports
        recommends supplementing VoIP service with basic landline service for
        use in 911 calls.
    --  Fine-tune by other attributes.  Consumer Reports Ratings reveal that
        providers differ in more than their customers' overall
        satisfaction.  Consumers should determine which TV providers carry
        programming they desire.  Keep in mind that fiber and satellite usually
        have a termination fee but cable does not.

How to Get the Best Price

    --  Check rates, then check again.  Consumers should scour the
        provider's Web site for the best deals, and ask a customer rep if
        the price quoted is the company's absolute best offer.  Consider
        checking again.  Consumer Reports found that rates could change,
        seemingly by the representative who took the call.
    --  Negotiate.  It can pay off, particularly in areas where there's
        competition between a cable provider and a traditional telephone
        company, and when a promotional rate is expiring.  Ask for a reduced
        price or free extras, such as installation or a premium channel at no
        cost.
    --  Ask for sample bills.  Before finalizing a deal, ask for a summary of
        all charges for the first and subsequent months.  Confirm that the
        figures include all taxes and fees, and one-time expenses such as a
        charge to keep an existing phone number.  Try to get all the information
        in writing. Check the figures later against the actual bills.
    --  Fine-tune extras.  As a rule, consumers shouldn't pay more for
        higher-speed Internet service unless they are doing a lot of downloading
        or sharing of lengthy videos or other very large files.  Most VoIP and
        fiber-based phone plans include caller ID, answering service, and
        unlimited local and long-distance calling in the U.S., Canada and Puerto
        Rico, and sometimes other countries.  Check that these features
        don't disappear or that the bill doesn't increase once the
        promotional period ends.

The complete report and Ratings are available in the February 2009 issue of Consumer Reports, wherever magazines are sold. Portions of the story are available for free online at www.ConsumerReports.org.

FEBRUARY 2009

The material above is intended for legitimate news entities only; it may not be used for commercial or promotional purposes. Consumer Reports(R) is published by Consumers Union, an expert, independent nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves. To achieve this mission, we test, inform, and protect. To maintain our independence and impartiality, Consumers Union accepts no outside advertising, no free test samples, and has no agenda other than the interests of consumers. Consumers Union supports itself through the sale of our information products and services, individual contributions, and a few noncommercial grants

SOURCE Consumer Reports

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