Origin Energy enters broadband market, emulates AYS' bundling strategy

Origin Energy extends its portfolio by adding broadband and is also considering a mobile offering:
disallowed/business/companies/origin-turns-tables-on-telcos-and-launches-into-broadband-20181016-p50a0m.html
https://www.crn.com.au/news/origin-energy-expands-into-broadband-514092

The fact Origin are following AYS despite the low margins of broadband and mobile - especially for a late entrant lacking scale and buying power in these new fields - could be an indicator that AYS' strategy of cross selling and bundling services actually works pretty well. And there is actually a lot of academic evidence that bundling services has some very positive effects, particularly reducing customer churn:

"Result 2 When individuals subscribe to services as part of a bundle with other services from a single supplier, they are significantly less likely to switch provider for that service."

https://www.bristol.ac.uk/media-library/sites/cmpo/migrated/documents/wp321.pdf

"We found that bundling does reduce churn for the three services in a triple-play bundle. [...] Our findings have several implications. First, they imply that bundling firms can earn higher margins on bundling customers than they otherwise would if bundling did not create switching costs.  [...] In addition, bundling may dissuade entry [by new competitors], as a significant proportion of customers are “locked in” to their service/provider choices through a bundle. [...]  Third, bundling may help firms slow down contracting markets."

https://kelley.iu.edu/riharbau/RePEc/iuk/wpaper/bepp2011-05-prince-greenstein.pdf

"Indeed, customer churn rate tends to reduce when customers purchase a bundle, and for this reason bundling has tended to be a churn management strategy."

https://ovum.informa.com/~/media/Informa-Shop-Window/TMT/Files/Ovum-Telco-Services-Bundle.pdf

"Bundling services offers customers greater convenience and lower prices and offers providers a way to address churn and build market share. Customers are still willing to switch providers if they perceive greater value, better services or more relevant content elsewhere. [...] Bundling services is perceived to be an effective way for providers to reduce the amount of customer churn, from which, many providers of a single service suffer. Respondents across Europe highly rated the convenience of having a single point of contact to deal with on all services and were generally of the view that their experience of multiplay or bundled services had met – or had exceeded – their expectations."

https://www.pwc.co.uk/assets/pdf/who-is-looking-after-your-customer.pdf

Looking forward to see how the substantially higher margin of energy contracts with the retention effect of cross selling works out for AYS.