ISPs Face Smart-Home Security Challenges, Analysts Say
Cable, telco and other companies ramping up smart-home security face challenges, analysts said this week. Some cited a limited market and more competition. Alarm.com last week agreed to buy the ADT Pulse business and Piper DIY system from Icontrol for…
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$140 million, and Comcast said it's buying other Icontrol assets (see 1606230073). "There are still a lot of uncertainties” in the business, said Imperial Capital analyst Saliq Khan, citing nascent systems and apps. "There already is competition.” Some predicted telcos and cable companies would “disintermediate the entire security industry within several years,” said Khan, who doesn’t believe that. It's unknown what impact “strong, proprietary providers” such as AT&T, Verisure and Vivint, various cable companies and Google's and Apple's plans for premises control will have, he said. Reports showing security systems are driving the smart-home market may point to a short-term trend, ROC-Connect Senior Vice President-Business Development Kevin Meagher told us. A recurring revenue model appeals to companies like AT&T and Comcast, said Meagher. The reason U.S. monitored home security penetration hasn’t grown above 21 percent “is not for lack of trying,” said Meagher, but because there’s a limited number of people willing to spend $30-$50 per monthly for it.