ORE telephone companies are offering plans that package long distance, local calling, the Inter- net, DirecTV and wireless services into one.
Bundled plans are convenient. They allow customers to put all of their telephone charges on one bill.
But a recent study released by the Telecommunications Research and Action Center shows that convenience may not be the most affordable option for consumers.
The TeleTips Residential Long Distance Comparison Chart compared 82 of the most popular telephone plans. It showed that bundled services, which have been marketed as a money-saving mechanism, brought value to those who make five or more hours of long-distance calls each month. Most consumers, however, don't make that many calls.
"While bundled packages appear attractive, for most consumers their value lies more in the convenience of having a single bill rather than as a true money-saver," Samuel Simon, TRAC's founder and chairman, said in a press release.
His telecommunications-focused consumer group researches industry-related issues. It also publishes information to help consumers make informed decisions.
"Bundled services offer a significant value over buying products individually," said Tom Matthews, spokesman for Sprint.
He estimates that the savings can total as much as 35 percent.
Jim Smith, Verizon spokesman, agrees that customers can get value out of bundled plans.
Verizon's maximum bundled product includes a combination of unlimited local and regional service, unlimited long distance, DSL and five popular features--home voice mail, caller ID, call waiting, speed dialing and three-way calling.
Such an offer has one umbrella price and is beneficial to those who use the services heavily or would pay for them individually without a packaged deal.
But the bells and whistles included can be more than the average person needs. Smith said a basic plan that charges a few cents per minute on long-distance calls is enough for some people.
Telephone companies encourage customers to regularly compare their account with their usage habits. Customers can often customize what they buy to better suit their needs.
"Many have been lured [to bundled services] by a promotional deal without thinking about it," Smith said. "You have to shop us online, by yourself, or--even better--with a service representative that can propose what will work better."
Companies are offering bundled plans because customers are demanding the simplicity of multiple services on one bill, said John Breyault, research associate for TRAC.
Telephone service providers say bundled services also are a way to compete with others in the communications industry.
"The bundling concept was born when the competition heated up," said Smith. "The model for all of this flows back to the wired side from the wireless side."
Wireless providers were one of the first to start offering bundled packages with unlimited long distance, buckets of minutes, and phones with built-in features, such as caller ID.
Those options have helped wireless companies win more than 171 million cell phone users in America, according to the Cellular Telecommunications & Internet Association. About 10 million of those people don't have a land line at all, which pressures telephone companies to enrich their bundled products in hopes of retaining such customers.
"Wireless providers set the expectation, and we responded," Smith said.
Telephone companies will continue to add other services to their packaged products as the need arises, he said. Land line companies are already starting to include services beyond the telephone industry--such as DSL and DirecTV--to keep up with the competition.
"We are not finished with this yet," Smith said. "We package and bundle services to keep customers when they are tempted by cable companies or wireless companies."
To reach MEGHANN COTTER: 540/374-5434 mcotter@freelancestar.com