Anyone looking into saving money on their communications and/or entertainment expenses has undoubtedly discovered the benefits of bundling. The question many have is: why does this work? A great example of this can be seen in crystal clarity by examining VoIP and VoIP bundling with digital cable and broadband services.

Fundamentally, VoIP is a technology that requires a broadband connection to transmit data. In fact, the connection is a major part of what makes VoIP affordable. Simply put, the PSTN (Public Switched Telephone Network) that has been around since Lassie was helping Timmy get out of the well did its job well, but it was designed in a completely different era. In fact, the PSTN of today is a significant evolution of that ancient network, but it is still an anachronism when compared to the Internet.

The truth is that the Internet’s flexibility and scalability are both inherent advantages that the PSTN does not share. Not only can data automatically flow along the path of least resistance on the Internet, but it can cross borders with ease. These borders are tightly regulated on the PSTN, and there are tariffs, taxes, and fees that have been litigated on behalf of the old guard PSTN vendors. A more free and open network, the Internet can be used to send multiple types of data at the same time over great distances without running into these fees.

Sending multiple types of data over the network also ensures that the more efficient Internet is never sitting idle by comparison to the PSTN. Since both networks consumer energy when idle, this makes the Internet a green alternative to the aging PSTN. In fact, some of the old guard PSTN vendors are jumping ship, such as AT&T. AT&T is also using its IPTV and DSL technologies to deliver a fusion of services that it calls U-verse, but they are far from the only provider to be pairing technologies together.

In fact, Qwest, Comcast, Cox, Time Warner, and Verizon are all major vendors that have deployed VoIP technology that has some level of integration with broadband services, and even IPTV options. AT&T seems to be the odd man out in this comparison simply because they are one of the old guard PSTN vendors to the point that many consider AT&T to by synonymous with PSTN-based services. That being said, AT&T does have some amazing Uverse deals to help customers get on board with the future and see the company in a new light.

Charles is an avid technology enthusiast who cannot decide whether he likes broadband or digital cable more. Either way, feel free to follow Charles at Fiber For All.