NEW YORK – AT&T Inc. is launching its home security and automation service in 15 cities, with an eye toward getting customers hooked on security cameras, thermostats and locks they can control from phones and tablets.
AT&Ts Digital Life packages will be sold in cellphone stores in markets including Los Angeles, Chicago, San Francisco and Miami. The company plans to roll the offering out to 50 markets by the end of the year.
The field of home monitoring and automation is dominated by security firms such as ADT Corp. Other phone and cable companies sell security packages, but AT&T is going further than competitors by developing its own technology and selling it nationwide, not just where it provides local phone service. It has set up monitoring centers in Dallas and Atlanta.
The entire U.S. home security market is worth about $18 billion a year, said Glenn Lurie, who is in charge of expanding the reach of AT&Ts network to new types of devices. Thats small compared with AT&Ts $127 billion in annual revenue. But only 20 percent of homes have security systems, so theres an opportunity to expand the market, Lurie said.
The initiative comes as the wireless industry has slowed after a decade of heady growth. Now that nearly everyone has a cellphone, wireless companies are looking for other sources of growth.
We see huge opportunity here. This is a significant, billion-dollar opportunity for AT&T, Lurie said.
AT&T hopes to get customers to pay more than the typical $40 a month for home security alone by providing connections to wireless cameras and other sensors.
AT&T will charge $250 for the equipment and installation of a home security package, plus $40 a month.