AT&T terminates Xanboo dealer agreement

LAS VEGAS—AT&T, which in December of 2010 acquired home security and automation provider Xanboo, is now telling dealers to stop selling Xanboo products by July 5.

In a March 31 letter, AT&T general attorney Meredith Mays writes: “AT&T is currently in the process of integrating Xanboo into AT&T's portfolio of services and affiliated companies. At this time, AT&T anticipates modifying or eliminating current Xanboo products and services and winding down its existing processes. The purpose of this letter is to notify you that your agreement shall be terminated effective as of midnight, July 4, 2011.” The letter tells dealers "you should not market or sell Xanboo service after July 5, 2011."

Sue McCain, at AT&T's corporate communications, told Security Systems News in an email interview: “We really aren't commenting at this stage. We aren't in a position to discuss future business plans for the service.” She added that, “in the meantime, it's business as usual for the end users of Xanboo service.”

Former Xanboo president and CEO Bill Diamond also declined comment via email: “After the acquisition my role is strictly as a consultant to AT&T, so I really can't comment on the [letter].”

Former owner of Greater Alarm and current ESX chair George De Marco said he was not surprised by AT&T's decision to abandon its current sales channel strategy for Xanboo. 

“This strategic shift by AT&T's management reflects their goal to deal directly with the consumers and by-pass the existing go-to-market strategy for Xanboo.  I believe AT&T will be re-vamping and re-branding the product line to deliver the Xanboo service model under an AT&T bundled service offering.” 

He called this news “another data point that confirms the electronic security industry is at a tipping point.” As newer and faster technologies beget newer and faster technologies, “consumers are continually moving on to the next big thing with eagerness," De Marco said.

“Large, well-capitalized players (Verizon, AT&T, Comcast and Ascent Media) are beginning to enter the market armed with products and services that are app-driven, enabling them to deliver bundled services solutions to consumers,” he said.

Companies such as ADT, Vivant and ASG Security, are wisely “refreshing their go-to-market strategies with innovative technologies and services that are resonating with consumers.” DeMarco said. He advised every alarm company to “preempt attrition “ by doing the same thing.

“In other words, alarm companies should approach their customer base with the newest technologies before someone else does.”

AT&T in December of 2010 acquired Xanboo after a number of partnership ventures, including starting a dealer program with the company and partnering with C.O.P.S. Monitoring for monitoring of home security and home control services.

Security Systems News continues to report on this story.