Security Broadband closes central stations

Company completes beta testing of product, heads back to lab for improvements
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Saturday, May 1, 2004

ORLANDO, Fla. - Security Broadband has closed its central monitoring stations here and in Las Vegas, bringing to an end the beta-testing portion of its product testing in March.

According to Harris Bass, senior vice president of distribution for Security Broadband, the company operated its beta testing program in the two cities for two years, beginning in March 2002 with a minimal amount of turnover.

From a central station perspective, Bass said, Security Broadband believed it could scale its technology, which allows for audio and video monitoring over broadband, efficiently.

“The average alarm took about two minutes longer than a traditional alarm to verify,” Bass said. “That verification is the difference between dispatching local law enforcement or fire and not dispatching.”

With its beta testing complete, Bass said, Security Broadband decided to close the centers and go back into the lab to create a more cost-effective gateway that would make its product more affordable.

“The pricing we were testing was roughly $1,000 per home, which was subsidized, and about $40 a month for monitoring services,”

Bass said. “Customers didn’t have a problem with the monthly fee, but the up-front technology, as is the case whenever you introduce new technology, was a bit expensive.”

Bass said Security Broadband hopes to revamp its technology and have it back in the field in the near future.

“We hope to come back out with the next-generation gateway box in the next 12 months that would utilize a third-party CMS, under our direction, for audio and video verification,” he said.

Because cable operators are interested in security, Bass said, the company will continue to work with them to deliver its technology and services.

“I think if we can put the business model together that makes this product a little bit more affordable, the cable operator is a viable partner in the security business,” he said. “They’ve got the infrastructure there with bandwidth to burn, so to speak, and they’re looking for applications.”