The new year saw a massive 25% increase in consumers saving money by signing up for a broadband bundle, a new study has just revealed. The research, conducted by broadband comparison site www.broadbandchoices.co.uk, found that more and more of us are buying both broadband and home phone from the same company, making bills simpler and saving a bundle of cash.

Bundling is a simple way to organise your home phone and broadband bills, and it makes sense for both companies and consumers. Chris Eagle, Commercial Manager at www.broadbandchoices.co.uk, explained: As people add more services to their household bills, they save more money and theyre less likely to switch providers. Youre unlikely to just remove one service, as the cost of your remaining services will increase. So unless youre happy to switch everything, youll stay put, keeping your current provider very happy!

One particular bundle has been making the news recently: TalkTalks free broadband offer, where broadband is offered free if you take up TalkTalks international phone call package and line rental. The marketing for this certainly did the trick, with over 25,000 people registering their interest in just a few days.

But the TalkTalk deal (brought to you by Carphone Warehouse) might not be the best option for you. According to expert Chris Eagle, Most consumers probably think the new TalkTalk package is the cheapest bundle on the market. But if you take things like connection charges, line rental, phone package and broadband fees into account then, over a year, Toucan still offers the light phone and broadband user the best value for money.

For example:

(i) Toucan Two-for-All phone package comes with free weekend calls with no call package fees, line rental at 8.99 a month and 512k broadband at 13.99 a month giving a total of 22.98 a month or 275.76 for one year.

(ii) TalkTalk free broadband offer has line rental at 11.00 a month, 9.99 for free local and national calls anytime, and a 29.99 connection fee, giving a total of 20.99 a month or 281.87 for one year.

Its worth looking at the full year cost as you have to sign at least a 12 month contract. (18 month for the TalkTalk offer).

It looks like this type of deal will be offered by more companies in the coming months: in a competitive market like this one, the other providers will have to keep up.

The future is mobile

Most bundled offers currently include broadband and home phone, but we could see mobile phone contracts being added in the near future. With NTL buying Virgin Mobile and Wanadoo about to re-brand Orange, it looks like the home and mobile phone markets are in the process of merging to offer you a better deal. And if you could get your home phone, broadband, cable TV and mobile charges all reduced and on a single bill each month, youd do it, wouldnt you?