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Sizing up the competition

Go small for better service and big for better pricing? It’s not always that easy when comparing central stations
 - 
08/07/2012

“Don’t look back. Something might be gaining on you.”
That pearl of wisdom from baseball legend Satchel Paige could very well be applied to the world of wholesale alarm monitoring. The competition is fierce and getting fiercer, raising the stakes for central stations of all sizes. Dissatisfaction over real or perceived problems can prompt a dealer to jump ship, costing a company a chunk of RMR and maybe even a bit of its reputation.

Double take on 2G: Readers see 'sunset' differently

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Tuesday, July 31, 2012

If nothing else, last week's blog on the 2G sunset served to toss another log on the fire in the debate over how long the technology will last in the face of frequency harvesting by carriers. Among the responses I received was an argument that 2G will remain viable in part due to CDMA-based equipment, which could stick around a lot longer than its GPRS and GMS cousins.

"I was reading your 2G sunset blog this morning and wanted to point out that many cellular alarm solution providers support T-Mobile USA or other 2G carriers along with AT&T Wireless coverage," said the reader, who said I could pass along his remarks on condition of anonymity. "AT&T is the carrier making the most noise about phasing out 2G GPRS, but T-Mobile has no current plans to sunset. Also, CDMA-based carriers like Verizon and Sprint still have a long planned life for 2G CDMA."

The reader agreed that the issue is critical for the industry, saying the majority of cellular alarm systems currently deployed utilize 2G GPRS on AT&T. But he took issue with the terminology being used and urged others to do the same.

"While AT&T-based cellular alarm providers certainly have the largest marketing presence, please be careful referring to the AT&T GPRS sunset as a '2G sunset,' because many 2G alarm solutions will stay viable for a long time," he said.

Another reader, Steve Wallace, called attention to the fact that just because no carrier has announced a date for the sunset, it doesn't mean it's not going to happen. He said the process has already begun and commented that companies not paying heed "may be looking at this wrong."

"For quite a while some carriers, such as AT&T, have stopped certifying new 2G devices," Wallace said. "Carriers have begun to re-purpose [refarm] the 2G spectrum into LTE offerings. 2G equipment is retiring and is being replaced for 4G. 3G expansion has virtually ceased."

The reality for alarm companies is that signal strength will decline for a lot of equipment in the field as these changes take hold.

"Alarm systems with 2G radios could become more problematic long before 'sunset' is announced," he said.

Like I mentioned last week, a sunset date by AT&T would likely knock a lot of people off the fence if they've been considering a move to 3G/4G. All is quiet at the moment, but it would be shortsighted to think it’s going to stay that way. Alarm companies would be wise to plan accordingly and keep a sharp eye on the horizon.

Lights out for 2G? 'Sunset' debate heats up

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Wednesday, July 25, 2012

Still looking for clarity about the “2G sunset” and whether you’ll be left holding the bag if you don’t upgrade your cellular alarm communicators to 3G (or even 4G) right now?   

You’re not alone. The buzz continued last month at ESX, with manufacturers jockeying to try to sway alarm dealers. Telguard, the company sounding the loudest warning about the sunset, went one step further by announcing a program that gives dealers up to $25 for every 2G cell communicator they replace with a Telguard 3G/4G product. The company does not sell 2G.

“We estimate the industry has 3 million 2G radios that will have to be replaced in the next five years,” said Shawn Welsh, vice president of marketing and business development for Telguard.

Unlike AMPS, the date for the 2G sunset will not be determined by the FCC; it will determined by cellular carriers based on capacity constraints and customer demand for 3G. Carriers have already begun reallocating frequency spectrum to accommodate 3G, Welsh said, cutting into the effectiveness of 2G equipment.

But not everyone believes the sky is falling when it comes to 2G, at least not in the next few years. Among those taking a different approach is Mike Boyle, general manager of Uplink. The company is continuing to offer 2G lines while rolling out 4G at the same time.

“People are still buying a lot of 2G products,” he said. “We think we may continue to sell 2G beyond the third quarter of this year. Everything we see in the network says it will be around.”

Uplink backs its business plan with the following assertions on its website:

—2G is a proven technology with falling price points as manufacturing costs decrease.
—No carrier has announced a sunset date for its 2G network.
—Uplink’s communicators operate with multiple carriers and will continue to provide nationwide coverage late into the decade or longer.

The company also offers a lifetime guarantee to replace its 2G products with 4G if the 2G units fail to operate due to a carrier technology change. Boyle said the approach covers all bases by recognizing the realities of the marketplace.

“Requests for 4G are minimal,” he said. “When a guy asks for 4G, we ship 4G. But our business is still 98 percent 2G.”

An industry source who spoke to Security Systems News on condition of anonymity said a sunset announcement from AT&T would be made “in the next few months,” which could knock a lot of people off the fence if they’ve been considering a move to 3G/4G. But longevity is key for alarm dealers, and if they can hang onto their 2G gear for another year or two (or four), many probably will.

It’s the nature of the beast.

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Security providers early winners in home automation/home security space

But telecoms and cable companies also are ‘in it to win’ and shouldn’t be discounted, an industry analyst says
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05/29/2012

DALLAS—Security providers have a “first mover” advantage in home automation/home security right now, but the big telecoms and cable companies entering the space are serious competitors who may be game-changers in the future, according to a market research company analyst.

Lowe’s home automation/home security launch near

The giant retailer’s offering will help grow the mass appeal of such services, a new report says
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05/22/2012

MOOREVILLE, N.C.—Lowe’s, the world’s second-largest home-improvement retailer, is expected to launch its new home automation/home security service soon.

AT&T ‘bullish’ on security

The company says it’s poised to not only compete in the home security/home automation market, but grow it too
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05/16/2012

DALLAS—AT&T isn’t just entering the security space with trials here and in Atlanta this summer of its home security/home automation service. The telecom also believes it will be able to transform that space through such innovations as letting customers try out its new Digital Life product in its more than 2,000 retail stores around the country, an AT&T executive told Security Systems News.

AT&T to do home security in Dallas, Atlanta

Professionally installed ‘Digital Life’ systems will be professionally monitored as well
 - 
05/09/2012

DALLAS—AT&T has announced plans to bring its home security/home automation offering to Atlanta and Dallas this summer.

AT&T enters security market, but can it become a billion-dollar business?

One way to build scale would be to acquire the largest player
 - 
05/09/2012

DALLAS—When AT&T announced on Monday that it will begin trials this summer of Digital Life, its home security/home automation service, here and in Atlanta, mainstream newspapers reported that the company was looking to potentially grow the service into a $1 billion business.

AT&T bringing home security in Dallas and Atlanta this summer

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Monday, May 7, 2012

It’s official now …. AT&T plans to bring its home security/home automation offering to Atlanta this summer … and also to Dallas, the Dallas-based telecom announced today. It’s the start of a nationwide launch, the company said.

AT&T’s Digital Life services will be professionally monitored from AT&T owned and operated 24/7 monitoring stations, the company said in a May 7 news release.

The company announced this morning that it plans to begin trials of Digital Life in Atlanta and Dallas this summer. Connected devices offered will include cameras, window, door, smoke and carbon monoxide sensors, thermostats and appliance power controls, the company said.

I learned late last year that AT&T planned to come to Atlanta, where its new Digital Life Services division will be based. Although the company declined to confirm the move at that time, I talked to John Loud, president of the Georgia Electronic Life Safety and Security Association and owner of Kennesaw, Ga.-based Loud Security Systems, who said he had learned about the plan from an AT&T representative.

According to a report in The Dallas Morning News, an AT&T spokesman said that its Digital Life offering will benefit from “AT&T’s involvement with a smart home startup company called Xanboo,” which it acquired in December 2010.

Just a year ago, Security Systems News reported that AT&T was terminating its Xanboo dealer agreement. AT&T wouldn’t comment on what the company was going to do with the Xanboo technology, but there was speculation then that AT&T was going to get directly involved in the security business.

I'll continue to report on this story. Here’s more from AT&T’s release:
 

AT&T Plans Nationwide Launch of Wireless-centric Home Security and Automation Services

Checking on the welfare of loved ones, protecting your home from intruders, fire or water damage,  unlocking a door for the repairman or changing the temperature setting on the thermostat – and doing it from wherever you happen to be, here or abroad  – can be as easy as if you were right at home.

AT&T today announced plans for a new portfolio of all-digital, IP-based home security monitoring and automation services.  Called AT&T Digital LifeTM, , the services will give users unparalleled control and security of their homes using any web-enabled device, PCs, tablets and smartphones, regardless of wireless carrier.

AT&T plans to begin trials in Atlanta and Dallas this summer.

Managed by a newly created Digital Life group, the remote monitoring and automation portfolio will feature web-based access to automation, energy and water controls, as well as professionally monitored security services.

“The AT&T Digital Life service has the potential to take home monitoring and home security solutions to another level,” said Larry Hettick, Research Director, Consumer Services, for Current Analysis. “The service promises to be as robust as anything in the marketplace today backed by the trusted AT&T brand. I am particularly impressed with its IP-based wireless platform, plans for a nationwide offering, and a wide range of devices that can be monitored and viewed from any carrier’s wireless or wireline Internet connection. These consumer-friendly capabilities will help grow this industry.”

AT&T Digital Life will feature a robust lineup of connected devices like:

    Cameras
    Window/door sensors
    Smoke, carbon monoxide, motion and glass break sensors
    Door locks
    Thermostats
    Moisture detection
    Appliance power controls

The devices will be wirelessly enabled to connect to the IP-based AT&T Digital Life platform inside the home.

"AT&T Digital Life will change the way people live, work and play -- and meets a clear need in the market,” said Kevin Petersen, senior vice president, Digital Life, AT&T Mobility.  “The service is smart, simple and customer centric– freeing homeowners to do the things they want to do without compromising on the things they need to do to care for family and home.”

Unique Digital Life Trial Features

AT&T Digital Life will include numerous unique features and benefits:

    Professional installation of the platform, sensors and other devices
    Integrated, wirelessly enabled platform that combines home security and automation capabilities
    AT&T owned and operated 24/7 security monitoring centers
    A state-of-the-art user interface application, which allows customers to customize a solution based on individual needs, and the ability to manage and control their services from the U.S. or while traveling abroad
    The option to experience and purchase the service in AT&T’s distribution channels, including AT&T company-owned retail stores. The service will also be made available for purchase on att.com when available commercially.
    The ability to add more features and services after the initial installation, hassle free

The Digital Life platform includes built-in AT&T mobile internet service and will also be capable of Wi-Fi, Z-Wave, and wired broadband connections. Trial subscribers can use their own wired broadband solution with the Digital Life system and can access the service and remotely control the products from smartphones, tablets and PCs, regardless of carrier.

“We’re planning a unique suite of services, from start to finish, that will give homeowners control of their property and their possessions through an easy to navigate user interface,” Petersen said.  “Our focus is on providing our customers with a comprehensive home security and automation solution that offers the best possible customer experience, and uses the most advanced mobile internet technology on the market to make their lives easier and keep their families and property safer.”

In February, AT&T announced plans to launch an SDK for international providers to equip global service providers with capabilities to offer customizable, web-based home automation, energy and security services to their subscribers.

 

Pilot shows smartphone potential

HID: Other applications in the works
 - 
01/30/2012

IRVINE, Calif.—With the announcement today of the completion of its smartphones-as-keys pilot project at Arizona State University, HID officials hope more integrators will begin to investigate how NFC-enabled smartphones might fit into their access control offerings in the future.

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