Unpack Bundle Confusion: Transparent Pricing To Come

The Commerce Commission has introduced draft guidelines for telco companies to clarify their bundled offers, enabling Kiwi consumers to compare prices and make informed choices about their true value. 

What is a Bundle?

Bundling is when companies put together different products or services into one package and offer it at a special price. This makes it super easy for customers to get everything they need from one place. For example, a bundle could include both internet and power services from a single provider.

Does Bundling Mean Savings?

Telecommunications Commissioner Tristan Gilbertson highlights concern over confusing bundled telco services, especially those combining power and broadband. 

Many companies advertise big broadband discounts if you bundle with power, but the catch is that the power pricing might end up being much higher than if you had separate providers. This can be confusing and end up costing consumers more than they expected.

What's ComCom Doing with Bundles?

The proposed guidelines by the Commission include the following:

1. If electricity or gas is cheaper outside the bundle with the same provider, this must be clearly stated upfront to consumers.
2. When bundles include items like fridges, TVs, or vacuum cleaners, the recommended retail price should be upfront, helping consumers assess the bundle's value.
3. Consumers should be informed upfront if they can't switch one part of a bundle without losing another. e.g. switching power providers without losing broadband.
4. Clear information must be provided to consumers about the costs if they cancel a bundled service while under contract.
5. Prices within the bundle must be displayed with GST included, putting an end to the practice of showing energy prices exclusive of GST and broadband prices inclusive of GST.

Is Bundling Right For You?

If you like the convenience of a one-stop shop, bundling your services with a single provider may just be what you're looking for. However, if you're aiming for maximum savings, always double-check if each service in your bundle might be cheaper on its own.

Head to Broadband Compare and Power Compare to effortlessly explore a wide range of plans and providers that suit your needs. All prices include GST and are transparent, guaranteeing you the best value for your money!

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