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Over a fifth of US broadband homes “highly interested” in ISP-delivered security services

New research from US firms Parks Associates has found that 14% of all US broadband households are “highly interested” in receiving security services from their ISPs.

In addition, those consumers with professional security monitoring services (around 16% of all US homes) are also interested in the new bundling and service options that come with Internet-enabled systems.

About 40% state that they would switch from their current monitoring provider if that company does not offer new features such as email alerts, energy management, and lighting automation functions, revealing the importance of bundled services and new IP features in customer retention and subscriber growth.

“IP-enabled security features are opening the market for new offerings from communication providers, which could result in new security system adopters,” said Tricia Parks, CEO, Parks Associates.

“The penetration rate for security systems has been stagnant throughout this recession, with new customers barely outpacing cancellations. If entry of new players can attract a portion of the US households without any monitored security, it could help revitalise this market.”

Communication services providers including AT&T Digital Life, Time Warner and Comcast are now entering the security market to lure first-time security-system users and prompt current customers to switch providers.

Parks Associates reports that its latest research suggests that communications providers’ reputations, lower fees, new benefits, and bundling deals all contribute to a consumer’s desire to switch services.

“Service providers are working diligently to diffuse awareness and understanding of their new offerings,” said Tom Kerber, Director, Research, Home Controls & Energy, Parks Associates.

“While that takes time and marketing money, providers such as AT&T and ADT Security are investing for the long-term future of home management and health services that enhance consumers’ daily lives.”

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