Notes

1. FOB stands for free off board. In other words, the buyer pays the freight.

2. Not a reference to the binding material in the floorboards! Rather a reference to bundle linkage approaches.

3. This can be demonstrated by the sales success rates of different bundles to different segments at different prices. Where there are segments with different cores and there are big differences in stand-alone bundle component prices, then mathematically you can isolate the discount implied by the market that is on the addon components. For example, a bundle of video (at $60 per month) + phone (at $30 per month) will sell better to the video segment than to the phone-oriented segment.

4. Comments by Ursula H. Moran, top-rated specialty retail analyst, formerly with Sanford C. Bernstein.