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Beware of the potential pitfalls in bundled telecoms services -CHOICE # 342

  • 2005.04.15

The sales practice of bundling telecoms and broadcasting services such as broadband internet, residential telephone, pay TV, and IDD into promotional packages have given cause to many a consumer complaint.

Bundled sales by telecoms operators are obviously intended to promote greater usage of their various services on offer with the attraction that the more services used, the more benefits the consumer will purportedly receive.

But the provision of the bundled services to the satisfaction of the consumer often left much to be desired. In the first three months of this year, the Consumer Council alone has received 245 such complaints.

Highlighted in this issue of CHOICE were a number of typical cases depicting potential pitfalls and consumer dissatisfaction towards telecoms bundled sales.

In one case, a consumer subscribed both pay TV and residential telephone line at a monthly fee of $219. However, the operator delayed the telephone line service for more than one month. When the consumer asked for compensation, the operator suggested only to refund $5 per month.

In another complaint, a consumer subscribed a bundled service for broadband Internet and pay TV. However, the broadband Internet was frequently out of service; and it took some five to seven days to repair every time. The consumer sought to terminate the service but was told that since it was a bundled package, he would have to terminate both Internet and TV services. Furthermore, a $600 penalty fee would be charged.

Consumers are advised to take heed of the following before subscription:

  • Avoid double subscription - understand clearly the services included in the bundle to avoid double subscribing any services that you already have.
  • Eligibility to a bundling package for an existing consumer - the favorable offers may not apply to new subscribers. Read the promotional materials or service agreement carefully.
  • Need for the services - assess whether you genuinely need all the services in the bundle.
  • Identify the responsible party - bundling package often involves more than one type of services which may be provided by different companies, mostly within the same business group. Consumers should check the service agreements or clarify with the salesperson which companies will be responsible for the installation, maintenance and other aftersales services.
  • Terms and conditions of the bundling package - study the terms and conditions carefully before signing the contract. For any agreement/offer made by the salesperson verbally, consumers should consider requesting for a written confirmation in the contract/service agreement.

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