Behind the Bundles: Transparency, Assumptions and the Truth About Savings
by Soichi Nakajima
In the world of telecom, bundling has long been marketed as the optimal way for consumers to save money. The common understanding is simple: purchasing services as a bundle instead of individually should provide more value at a lower cost. This belief is so widespread that many consumers no longer even compare bundled offers with their respective standalone services—they assume that the savings are automatic. But are they?
Through data extracted from Tarifica’s Telecom Pricing Intelligence Platform, we’ve analyzed bundling patterns across various European markets. Our findings reveal four distinct types of bundling strategies, offering a range of savings from 0% to as much as 60%. Surprisingly, the extent of these savings can vary dramatically based on how bundles are structured.
These four categories of bundling strategies can be positioned along a spectrum of savings, ranging from the most to the least consumer-friendly options:
- Value Savings
- Informed Savings
- Assumed Savings
- Fixed Savings
To illustrate these categories, let’s take a look at real-world examples from telecom operators in Belgium, France, Spain, and Germany.
Value Savings – Proximus, Belgium
Proximus exemplifies the type of telecom bundle that customers expect when they think of savings. As shown in the offer comparison below, the standalone mobile plans in Belgium offer fixed amounts of data: 10GB for €19.99 per month, 35GB for €24.99, and 70GB for €29.99. However, their bundled offers, Mobile Flex S, M, and Unlimited, offer even more data at a lower cost. For instance, 15GB for €15, 85GB for €26, and unlimited data for €33. This is the ideal scenario, where bundling truly provides more value and leads to substantial savings for consumers.
Informed Savings – SFR, France
SFR in France takes a transparent approach with its bundled offers. As shown in the offers below, the savings are explicitly stated: depending on which mobile plan is chosen as part of the bundle, consumers receive a discount of €4, €5, or €6 per month. While the savings are modest, the clear communication as to their precise amounts allows customers to easily understand how much they are saving by bundling, eliminating confusion and giving them the information needed to make an informed decision.
Assumed Savings – Orange, Spain
In contrast, Orange in Spain offers a wide range of bundles, but doesn’t clearly specify the level of savings consumers will enjoy. The onus is on the customer to compare the bundle prices with standalone services themselves, which can be a cumbersome and time-consuming process. This category and the previous one both highlight how bundling may not always deliver the substantial savings expected.
In the examples above, a €59 bundle might only save €4 when compared to purchasing the same services separately (Offer 1), while other bundles may offer more notable discounts—such as one that provides a 22% savings (Offer 2)—there’s no consistent way for consumers to gauge the value without doing their own calculations. This makes the perceived savings more of an assumption than a certainty.
Fixed Savings – Deutsche Telekom, Germany
Finally, Deutsche Telekom offers fixed savings, which provide a set discount—€5 per month—when customers opt for a bundled offer. Though the discount is clearly communicated and predictable, it is relatively small in percentage terms, especially for higher-priced bundles. For example, the €5 savings represent between 4% and 8% off bundle prices, which range from €60 to €105. While the discount is guaranteed, the overall value may not be as compelling compared to bundles that offer larger percentage reductions.
Conclusion: The True Value of Telecom Bundling
Telecom bundling is a complex strategy that can offer consumers varying levels of savings depending on how it is structured and marketed. While some operators provide clear and significant discounts, others rely on customer assumptions and hidden calculations. There’s also something to be said for the level of transparency in the presentation of these bundles to consumers. Since customers are unlikely to conduct their own price comparisons, the decision by operators to clearly show how much a bundle saves can significantly influence perceptions. In many cases, customers may not even realize how much (or how little) they are actually saving, making this transparency a critical factor in their decision-making.
The variability in such bundling structures and communication strategies raises questions about the real benefit of bundling: is it truly delivering value to consumers, or has it become a convenient method for operators to package services without offering substantial savings?
As the telecom industry continues to evolve, bundling remains a key tool for operators to differentiate their offerings. But as we’ve seen, not all bundles are created equal. Understanding the nuances of these strategies is critical—not only for consumers looking to get the best deal, but also for industry stakeholders and regulators seeking to ensure that bundling practices are transparent and fair.
The true power of bundling lies in how clearly it communicates its benefits to consumers. By dissecting these bundling patterns, we can better appreciate the fine line between perceived savings and real value—without passing judgment on the strategy itself.
About the Author:
Soichi Nakajima
VP Data and Analysis
snakajima@tarifica.com
With over 20 years of telecommunication market analysis experience, Soichi oversees the data collection, quality, research, analysis, and production of all data projects and quantitative studies.
For questions or comments about this analysis, please contact Penny Wiesman at pwiesman@tarifica.com