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"It is a bundling service and mobile revenues are being used to subside fixed line business - that's a cost.
ADT and Tyco hope that Western will simply cash in its stake--turning a profit of some $600m in the process--and get out.Underlying all three attempts to snare ADT is the fashionable concept of "bundling" service businesses together--the idea that customers would rather buy a package of services from one firm (be it an advertising agency, a management consultancy or a security specialist).
Bundling service with PCs incurs minimal marketing outlay, offsetting lost service revenue.
"The only other bundling service available to readers is a program called Kindle Matchbook.
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Virgin, like other broadband and TV providers, is adept at bundling services.
In the meantime, analysts and regulators are watching how the two industries proceed with bundling services like telephone, Internet and even television programming.
The AOL venture's chief advantage will be bundling services with Legend's personal computers, which make up about a third of all those sold in China.
Bundling services together also makes sense on basic economic grounds, observes Mr Odlyzko of the University of Minnesota: "It means you can exploit uneven preferences for different goods".
Second, Nokia is increasingly bundling services like e-mail messaging and music into phones, as well as introducing a better operating system later this year.
Nokia, based in Espoo, Finland, is bundling services — such as e-mail, navigation and free music in some markets — into phones and introducing an improved operating system this year.
Richard Lloyd, the boss of consumer body Which?, makes the point that bundling services makes it more difficult to compare products, and reducing the number of providers is rarely good for their customers.
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