Phone TV & Internet. The words phone, TV, and Internet are very generic terms. Not just in level of service, but also in the way those services are delivered, and what each of those terms mean to different people. Phone can mean cell phone, TV can mean cable, satellite, or fiber optic, and Internet could mean cable, DSL, satellite, or fiber. I didn't mention dial-up, because in terms of internet service these days we're generally talking about high-speed.

Bundling Service. The term bundling in this case, or to bundle services means to have more than one service from the same service provider on one bill. Two services on the same bill is a bundle, but consumers aren't generally limited to only two services. It's possible to bundle home phone, cell phone, television, and high-speed Internet in many different combinations.

AT&T DirecTV and DSL. I mention this package because DirecTV and DSL high-speed are what make this bundle package different from U-verse (more on that later). At one time, Dish Network, another satellite TV provider, was AT&T's answer to cable television service, and DSL was it's answer to cable's high-speed Internet. AT&T currently uses DirecTV as it's satellite provider.

AT&T U-verse. While fiber optic technology has been around for some time, it hasn't been used quite the way AT&T does. U-verse is a product line that provides television, and even high-speed Internet over a fiber optic network. U-verse is not cable, but it is hard wired to your home the same way cable is. In fact many people mistakenly refer to it as AT&T cable TV service. U-verse provides high-speed Internet with download speeds up to 18Mbps with it's current Max18 residential offering.

Choosing an AT&T Bundle. Now that you know two of the main differences, there are also a couple similarities. For one, you can bundle home phone service with both packages. You can also bundle wireless, or cell phone service with both packages. It's also important to note home phone service might mean landline, or it might mean digital, the later being cheaper. Unless you opt for max18, the high-speed Internet you get with U-verse is probably going to be DSL.

Hopefully you come away with this with a better understanding of exactly what an AT&T bundle is. To break it down to simpler terms, one could always think of it as either a standard bundle (the DirecTV DSL option), or the U-verse bundle (the more advanced fiber optic bundle). In terms of price it's hard to say which is cheapest. There are just too many factors that come into play, with the main ones being your level of service for each product, and also your geographic location.