Wireless Connectivity

IP-connected home security appeals to approximately half of all U.S. households that have broadband connections, according to Parks Associates (News - Alert). Parks is the host of the Smart Energy Summit with a focus on “engaging the customer.”

In total, about 56 percent of Americans leveraging broadband have an interest in purchasing connected door and window sensors. 53, 49 and 44 percent of Americans are interested in door locks, outdoor cameras and lighting, respectively.

Stuart Sikes, president of Parks Associates, pointed out that younger adults are more likely to purchase home controls. Siked stated, "The appeal of home control features, especially among young consumers, stems from connectivity in the equipment and highlights the potential of using IP-enabled features to re-cast and sell energy systems to the next generation.”

In a white paper entitled, “Service Providers and the Connected Home,” Parks Associates urged digital service providers (DSP) to add additional services to simple broadband connections.

DPSs face competitive pressure in their bread and butter services, including voice, video, data services and communications, not only from other DSPs but also from providers like Vonage and Google (News - Alert).

To capture new business, Kurt Scherf, vice president and principal analyst for Parks Associates, recommended that DSPs look at their basic connection points as springboards for multi device connectivity.

Scherf suggested that DSPs have opportunities in entertainment, communications and technical support as well as in home, health and energy management. Now, Parks is urging providers to expand into IP-connected home security.

At this year’s Smart Energy Summit, Parks and a number of other firms plan to focus on alternative pricing schemes for home security services. Currently, only 15 percent of American households would be willing to adopt a home security subscription package that charges a monthly fee.