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2G sunset opens doors to resi acquisitions

Wednesday, January 13, 2016

Now that it is the New Year—2016—it is also the year of the 2G sunset, with the effective end date for 2G signals being Dec. 31 this year. A lot of people have been talking about it, such as how to prepare for it, how to approach mass radio conversions and when dealers need to start. Lately, I’ve heard that the 2G sunset will play a role in the 2016 acquisition market.

Specifically, I’ve heard that dealers that have not completed, or perhaps haven’t started, their 2G conversions may find it easier to sell their accounts to a company that can and is willing to take on the project.

Last week, I heard from John Loud, president of LOUD Security, that the conversion might play a role in 2016 acquisitions for the company.

This week, Doug Smith, president of the commercially focused business Redwire, shared a similar sentiment—that there could be opportunities to buy resi accounts as a result of the 2G sunset.

At Honeywell’s 2015 CONNECT, there was a discussion on how dealers should get started on 2G conversions. A recurrent point was that all alarm companies should have started by now, especially as some areas have already lost 2G signals.

One speaker at CONNECT, Spencer Smith of APS, said that his company hired additional staff—a technician and a coordinator—to focus solely on the conversion.