Packaging, consolidation and bundling of bills - be they for banking, energy or communications - has become increasingly common. Banks offer incentives for having your home and investment loans, personal loans, credit cards and transaction accounts packaged at the one bank.
The telecommunications industry has gone down the same route. There are discounts for packaging your fixed phone line, mobile phones, internet access and pay TV with the same provider and consolidating those services under the one bill.
It enables the service provider to "own" the customer for the period of the contract and to make every effort to absorb all available dollars spent in that sector. and to see where there are opportunities to pitch for more business.
But most importantly, the company can work your average monthly "spend" into its revenue figures and lock that figure in for the period of the contract.
It gives the bundler greater revenue certainty and it also means the customer is tied down and liable to pay a penalty if the contract is broken.
The marketing lure is simple: it is easier to know where you stand if you get one bill instead of several and there are incentive discounts on the package.
Sounds good. Less paperwork. One payment. A saving. Why not?
"Why not" becomes clear when you get the bill and it lacks the transparency required to work out exactly what the discount is on, and how it applies.
Some bills are so complex that you need a higher degree in mathematics to work out whether you are in front or behind compared with the unbundled product.
A look at Telstra's Rewards package brochure offers some insight into the complexity. There is a 5 per cent discount on fixed phone plus mobile or internet or Foxtel, a 10 per cent discount for two or more of the above, and 50 per cent off relevant calls made between the Telstra home phone and a Telstra mobile on a Telstra single bill.
Then there is a matrix of eligible services, ineligible services, eligible charges and ineligible charges to work from. It takes a lot of time and you would still be in the dark. On top of that, the different mobile phone plans are built into the account.
It raises the question: what use is competition if you cannot easily establish the true cost or how it compares with competitors?
The Telecommunications Industry Ombudsman says bundling has to be treated with care by consumers. The office points out that bundling promises additional discounts or other benefits for each service that a customer combines on their bill. The discounts often work in conjunction with the existing discount schemes and understanding exactly what is and what is not included in the various discount offers can be very confusing.
Complainants typically state that their decision to transfer their services to a new provider was based on a belief that they would receive the stated discount off their entire bill, not off "eligible charges".
One reader was at a complete loss after a Telstra salesman persuaded him to combine his two mobile phone plans under a special business plan within the single bill, which included the fixed line.
The incentive was bonus discounts on the mobiles on top of the discounts for the combined bill. However, he now finds that his monthly bill runs to nine pages, with subtraction and additions running page after page to reflect the different costs, plans, bonus arrangements and discounts. And this chap is a professional.
If there is a dispute over a bill and payment is delayed (or you forget to pay), you risk all of the bundled services being abruptly terminated.
This involves not one disconnection but the loss of all the included services. Plus, of course, several reconnection fees.
The fixed phone line is harder to disconnect due to Telstra's obligations to provide access to basic telephone services, but the land line may be limited to only receiving calls.
