Tuesday, August 28, 2012

Comcast Enters Home Security Fray - Arkansas Business

Once in a blue moon, a huge Internet service provider or energy company wades into the home security market. Comcast's Xfinity brand is the latest contender in Arkansas, but will it last?

Other large companies have attempted to enter the home security market, but eventually backed out.

"Companies like Comcast, Entergy and First Electric come and go in the alarm market," said Wayne Brownfield, owner of Good Guys Security LLC of Perryville. "They get involved; then a couple of years down the road, they get out."

Brownfield has been in the security industry for decades, working for larger companies before he began Good Guys in 2006. He recalled Entergy buying one of his former employers, then selling it off to ADT after three years.

"There must be a reason why some companies think it's a good deal, then realize it's not and bail out," he said.

Often, ISP companies offer a security package because home users find their broadband or DSL service interferes with the existing security system.

"If you're with AT&T and you get DSL, you've got to have a filter on your alarm panel, or two things happen," Brownfield said. "It'll interfere with and slow down your security service, and you're not going to get your high-speed Internet service."

So rather than letting customers defer to another company to put on an alarm filter, some ISPs monetize the solution.

In Comcast's case, the Xfinity Home system works with the customer's Internet connection. Security systems are historically tied to traditional landline telephones, but customers are gradually shifting to cell phone monitoring. Brownfield said his business was about 60-40 in favor of landlines.

As far as technology goes, Xfinity provides a touchpad control mechanism and sensors for doors and windows, as well as automatic controls that can tie to smartphones. The product is being marketed as a "smart home" system more than a simple security setup.

"It's really that home automation piece that's really cutting edge," said Sean Downey, senior manager for marketing for Comcast's "heartland region." "It allows folks who are on the go to do a lot of things remotely. It not only includes professional monitoring and home security features, but it provides the technology for home controls through a touch screen."

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Source: http://www.arkansasbusiness.com/article.aspx?aid=132695.54928.144823

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