December 7, 2010

Your Internet Provider, Now Your Home Automation Provider

Your Internet provider now also wants to be your Home Automation provider. With monthly recurring revenue from these services, the providers get a steady revenue stream per customer, a very attractive source. The home services also are very profitable for the providers. No wonder that all the companies are eagerly getting into this market.

AT&T acquired Xanboo recently (via Cepro) and earlier Motorola acquired 4Home  presumably to offer services through Verizon. Meanwhile, Comcast, a traditional ISP is providing Home Security and Automation services while ADT, a traditional Home security provider is offering Home Automation. And Verizon is getting ready to offer a full suite of Home Management services. Similarly, the smaller ISP’s have all beefed up their portfolios of Home services.

Each of the providers is hoping to leverage their existing strong channels to the Home. It remains to be seen whether all this activity will result in users getting additional innovative services?  Or higher bills for a small additional value?