Vertical Markets: Home security market ripe for wireless opportunity

The flattening of wireless subscriber growth has given operators additional incentive to look for new ways to drive adoption of services, including a broad push by industry into machine-to-machine devices. While consumer facing initiatives like e-book readers have garnered much of the publicity on these plans, new segments are popping up looking to take advantage of cellular’s breadth of coverage and capabilities.
One company looking to this path is Austin, Texas-based home security and automations solutions provider uControl, which recently unveiled its SMA TouchScreen device targeting broadband providers looking to get into the home security and automation business. The device sports a 7-inch screen and integrates with home security products from Honeywell, DSC, GE and Bosch allowing broadband providers to offer a service that does not require installing new wires into a home. UControl recently signed a deal with SMC Networks to manufacture, support and market the device, with uControl focused on the software.
Bill Ablondi, director of home systems research at Parks Associates, noted that around 25% of homes in the U.S. have an alarm system and that 80% to 85% of those have a home monitoring deal with a security company.
“There is definitely a substantial market here for carriers looking to expand their usage base,” Ablondi said.
That software includes the integration of application widgets and an open platform to allow content providers to develop applications for the device. Those applications could include weather information, entertainment services or social networking applications.
Jason Domangue, VP of marketing for uControl, noted that a key focus for the offering is to provide an alternative to ADT Services, which controls most of the home security and automation market.
While the device and service rely predominately on wired broadband and unlicensed Wi-Fi services for its operation, the offering also integrates a GPRS radio for redundancy should either the broadband or Wi-Fi connection be unavailable. The cellular connectivity capabilities of the device allow users to set up text message or e-mail alerts that can be sent to their mobile device notifying them of any activity with the system as well as to program the security system remotely. Future integration of the SMA TouchScreen into other household appliances using embedded Zigbee and other wireless technology could also allow for additional remote programming and monitoring opportunities.
For wireless carriers, home security and monitoring services offer an opportunity to bring additional data revenues to the plate from service that typically rely on legacy data network capabilities and little additional infrastructure support beyond billing.
“There is really little additional equipment needed by carriers to tap into this market,” Ablondi said. In addition typical security monitoring agreements handle any sort of liability concerns that may arise from backing these services.
South Carolina-based ILEC Comporium Communications recently signed a deal with uControl to add the device to its Security Dealer Program offerings that includes home security options. The company, which also offers wireless services through an agreement with AT&T Mobility, said it was still working on wireless plan details including any sort of carrier affiliation for the SMA TouchScreen, but that the pricing would be included in the plan to consumers. Comporium’s current home security offerings also include cellular backup capabilities.