In an effort to further differentiate its presence, AT&T will begin selling home automation and security services nationwide.
Ahead of the annual CTIA trade show this week, where all the mobile companies make their big announcements for the year, AT&T said it will begin trials of its new product line in Dallas and Atlanta this summer.
AT&T has been very active in pursuing additional opportunities ever since it lost its iPhone exclusivity. The company has managed to sweet talk its way into many other partnerships.
For example, AT&T is the only company that offers 3G service for Sony’s Playstation Vita handheld and it remains the exclusive provider of mobile service to Amazon’s Kindle e-readers.
Now, the company is ready to move into something that’s even more distinguishable from its traditional business model.
But moving into home security and automation isn’t unheard of for companies that are mostly steeped in mobile technology. Verizon is doing the same thing, as part of its expansion into the home market with its Internet and TV services.
Comcast is also offering home security packages to its customers, but AT&T has bigger visions since it wants to sell to everyone – not just markets where it already has existing infrastructure.
Home security and automation has very high margins and it’s a profitable business – if you can attract the customers. It’s very competitive, which can be seen by the fact that ADT is the leader in the industry but only has a 25% market share.
AT&T has been working on a way to enter this space since 2010, when it bought a company called Xanboo that specializes in wireless cameras, thermostats, lighting and appliance controls.
