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At&t Expands Market To Home Automation And Security Market
AT&T Inc., the premier cellphone cop
AT&T Inc., the premier cellphone cop. in America and one of the most honored companies all around the world, will start selling security services in Houston and nationwide to expand its business to seek returns outside phones. It is a huge challenge to ADT, home alarm monitoring market leader in the United States.AT&Ts contenders, involving cable TV company Comcast Corp. (CMCSA) and Verizon Communications Inc. which is a cellphone company, have barged into the smart home market. Smart home automation is home alarm monitoring with some additional smart features. For the telephone and cable companies, this move aims at seeking sales returns chances outside the standstill wireless subscriber and pay-TV industries. It is a fragmented market. We just chose the right time to join in, said President of AT&T emerging devices.
At the International CTIA Wireless event starts today in New Orleans, AT&T proclaimed its services in home automation and security market ahead of its presentation. This service, which is called Digital Life, provides many kinds of home security services that allow users to monitor their residences remotely through their computers or phones. In late 2010, AT&T has obtained a smart technology from Xanboo, a company AT&T bought. The central control panel connects wirelessly with householders lightings, thermostats, cameras and also sensors for windows, doors, carbon monoxide and smoke. Through this panel, home owners can then control their households from their smartphones.
The installation and services will be sold in AT&T stores, beginning with a trial this summer in Dallas and Atlanta.
According to research firm Current Analysis Inc., Tyco International Ltd. (TYC)s ADT unit, the biggest security firm in U.S. dominates the home security industry. And the Bloomberg data reveals that Tycos security business had sales of $8.63 billion last year. ADT sells its security and alarm monitoring package for $50 per month with a $200 installation charge. Verizon charges this for $220 with a $10 monthly cost. But, in some small security companies, they make their prices much lower than them. For example, a smart home package from Houston home alarm monitoring firm only charges $45.95 per month with a $49 installation cost.
This new system can be a monumental leap for not only AT&T, but also the world marketplace. Though there are a variety of home security firms in the marketplace, AT&T makes use of its simple user controls and technology to allow users to operate the system through the Internet or phones no matter where they are.
In U.S., almost all adults have already had a mobile and just one in five houses have home monitoring systems. Therefore, for AT&T, theres plenty of room for growth in order to win a portion of a market.
Bloomberg data also shows that operating profit margin at AT&Ts wireless business was more than 24 percent while it is less than 16 percent for Tycos security-solution business unit. This may point that one challenge that AT&T has to confront is to offer the service without sacrificing profit margins. AT&T is showing its ambition with the aim of selling security services nationwide, not just offering home security and automation services in Houston. As the president Lurie said, they have been assessing this profit issue for a long time and AT&Ts Digital Life doesnt hurt margins. They are confident of growing returns in this home alarm business.
by: bluecat900