AT&T's Next Business Is Home Security
Having trouble selling phones and subscriptions, AT&T has now moved to other markets. In recent months it has invested heavily in its next venture home security and automation.
After selling cell phones, digital TV, DSL, wireless and high speed Internet the company has now turned to selling home security with a hope to succeed. The question is why AT&T has turned to this new business. The answer is because its competitors; telecommunication companies and DSL providers like Verizon and Comcast have already taken the same route.
AT&T plans to sell home automation and security systems on a larger scale through its stores. Dallas and Atlanta will be the first two cities where AT&T will sell the home automation systems through its stores this summer.
In today’s competitive business world, telecom companies have been facing the heat and adopting new strategies to stay ahead of their rivals. Verizon and Comcast had already started selling home security systems although not on the scale that AT&T has planned. So it was but logical for AT&T to follow its competitors’ footsteps.
Glen Lurie, AT&T executive in charge of the Digital Life Project said that companies of the size of the AT&T look for billion dollar opportunities. Digital Life is looked as a significant investment opportunity by AT&T. The company expects Digital Life to add one billion dollars to its annual revenue which can cover its losses in the phone business. However analysts believe home security is a growing market and customers would not simply switch over to different companies. Companies find it difficult even to lure mobile customers.
Lurie further elaborated that Digital Life would be a solution for people who leave their homes regularly for trips. All it needs is an Internet connection. It can inform you if there is water leakage or a burglary in the house.
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