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AT&T Expands Services to Security

AT&T Inc., the chief telephone company in the United States and one of the most famous companies all around the world, is going to begin providing home alarm monitoring services in Atlanta and nationwide to enlarge its services to seek margins beyond telephones. It can be a tremendous challenge to ADT, home security market leader in America.

Several rivals of AT&T, including Verizon Communications Inc. and Comcast Corp., have entered into the alleged smart-home market. And now AT&T joins in. For these cable and phone companies, this move targets on seeking sales profits chances beyond the standstill wireless-subscriber and pay TV industries. ”It's a fragmented market. It is just the perfect time for us to join in,” said Glenn Lurie, AT&T's president of emerging devices.

The service, which is called Digital Life, let householders watch their houses via cameras and light their houses remotely by using computers or cellphones as well as get a 24 hours home monitoring service, AT&T claimed the service today at the International CTIA Wireless event in New Orleans. In 2010, AT&T has got an advanced technology from Xanboo, a firm AT&T took over. The central control panel connects wirelessly with home owners' lights, thermostats, cameras as well as detectors for doors, windows, smoke and carbon monoxide. Via the panel, householders can then control their households from their smartphones.

The installation and services will be sold in AT&T stores, starting with a trial in the next few months in Dallas and Atlanta.

Tyco International Ltd. (TYC)'s ADT unit is the greatest home monitoring firm in the United States that dominates the home monitoring market. Last year, the security sales of Tyco's reached $8.63 billion, Bloomberg data shows. A security and monitoring package called Pulse from ADT is sold for $50 per month with a $200 installation cost. A similar monitoring and security package from Verizon is sold for $220 with a $10 monthly cost. Some other home monitoring companies charge much lower, for example, Atlanta home monitoring firm provides its smart home security package starting at $45.95 per month with a $49 installation fee.

The new system can be a great leap for not only AT&T, but also the world market. Though there are various home monitoring companies in the market, AT&T takes advantage of its simple user handling process and technology to let users operate the system via the Internet or smartphones no matter where they are.

For AT&T, there's plenty of room for growth to a portion of a market. According to Current Analysis, almost all adults have already had a mobile phone and just one in five households have alarm monitoring systems.