Verizon Sees Opportunity in Lowe’s Deal to Extend Smartphone’s Reach
Verizon Wireless is testing Lowe’s Iris home control system in 118 stores along the East Coast and in Georgia and Alabama, a spokesman told us Monday. The stores are offering the Iris safety and security package and the comfort and control package, and the products “are in there now and will be in there,” the spokesman said in response to how long the carrier will commit to carrying the home management gear. “The question is will we expand?” he said. If Verizon Wireless stores do well with the initial run of products, it will expand to stores in other parts of the country and to other products that come out in the Iris line, he said, without quantifying what minimum sales requirements would be for expansion.
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Verizon Wireless demoed a home control system from 4Home at CES 2011 but the partnership never moved to the store level, the Verizon Wireless spokesman told us. The two companies had a demo arrangement, and then Motorola Mobility bought the 4Home platform in late 2010. Motorola Mobility was then acquired by Google last May. Google announced at the end of last year that it was selling the Home unit of Motorola Mobility, including 4Home, to Arris for $2.35 billion. That deal is expected to close in Q2.
For Verizon Wireless, selling smart home products that are controllable by a smartphone or tablet extends the functionality of the devices, the spokesman told us. “We want to make sure people understand everything a smartphone or tablet can do, that they're not just about watching movies or going on Facebook,” he said. Verizon is selling the $179 security kit -- including a smart hub, keypad, two door/window sensors, a motion sensor and a window decal -- and the $179 comfort and control kit with a smart hub, thermostat and smart plug. It is also selling a 720p IP camera that begins recording when an alarm is triggered. Recording requires Lowe’s premium service that’s $9.99 a month.
Iris IP security cameras enable Verizon to leverage the high-speed benefits of the 4G LTE network, the spokesman said. He gave the example of a flooded basement where a homeowner would be alerted by a text message and then could tap into the network via cellphone or tablet to view the situation. The Iris/Verizon solution gives customers the ability to monitor their home via video camera “with no professional installation required,” he said. The Verizon Wireless website provides a link to Lowe’s for professional installation options, however.
The Verizon spokesman called mobile devices “the gateway to other products and services” and said the Iris products meet Verizon Wireless’s criteria that accessory products sold in its stores are simple to set up and use. The spokesman said the Iris products are “as easy as buying a headset.” Customers buy the products, set them up and download control apps for mobile devices from the Lowe’s website, he said.
Lowe’s assumes all the heavy lifting for consumer support for Iris products, the Verizon Wireless spokesman told us. Kevin Meagher, vice president and general manager-smart home for Lowe’s, told us that beefing up its tech support area is key to the company’s success with the home management system category and while not quite 24/7 support, Lowe’s plans to have significant resources in place to support customers of Lowe’s, Verizon Wireless and other distribution channels that emerge, he said.
The distribution partnership between Verizon Wireless and Lowe’s is not exclusive. Lowe’s is pursuing additional distribution relationships with service providers including telcos, and Verizon Wireless carries other brands of home monitoring gear. Verizon Wireless stores also carry Belkin home management products, including switchable outlets that can be controlled from across the room or across the house, along with a Wi-Fi camera.