  Bundling is a pervasive strategy in telecommunications markets. Due to the
great success obtained at Spanish Telco market, this article analyzes the
impacts of the introduction of convergent bundling on that market. This
commercial strategy has caused major changes in the market, both from the point
of view of demand and its own structure. From the demand-side, we analyze how
product bundling has produced a substantial reduction on effective prices in
the sector, and by means of technological diffusion models, we show that
bundling is the main factor of Fixed Broadband development, along with FTTH
networks deployments, in contrast with stand-alone product marketing scenarios.
Pay TV inclusion and hard-bundling strategies at communications packages has
motivated the greatest growth of this product in the history of this market.
Regarding market structure, the introduction of convergent bundling has led to
a consolidation in the market, increasing the concentration around the main
convergent players
