"Each telco pre-embeds free versions of Lookout's security software on Android smartphones they supply in return for a share of the income if and when these users convert to using a premium (paid-for) version of the software."
If they're not careful, we'll end up with a situation like on the PC, where you get a useless bloatware antivirus product pre-installed. Except this time you can't remove it as it's built into the ROM. Thank-you, Lookout.
I used it when it first came out (mainly for its location ability; I'm a bit dubious as to the merits of its malware detection, when I reckon Google probably act roughly as quickly to remove apps from the Market as Lookout can push a signature update) but they built on more and more features. Just like the PC antivirus industry, pretty soon you get a product that tries to do everything and does none of it well.
For Android device-tracking needs, I recommend AndroidLost. Free, no subscription, and very very powerful.