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ESA honors David Koenig with Weinstock Award

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06/19/2013

NASHVILLE, Tenn.—David Koenig, partner at Capital Fire & Security in Madison, Wis., has received the Morris F. Weinstock Person of the Year Award from the Electronic Security Association.

Kessler and DeMarco: Professional monitoring, strategy bode well for DIRECTV/Lifeshield deal

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Wednesday, June 5, 2013

I had a chance to speak to Jeff Kessler, research analyst for Imperial Capital, and ESX chairman George DeMarco about the satellite television giant DIRECTV getting into security with the purchase of LifeShield.

Below is a summary of those discussion:

This deal is different from the string of cable companies and telecoms that have jumped into the fray over the past couple of years, Kessler said, for a couple of reasons.

First, DIY is built into the DNA of both DIRECTV and LifeSheild, Kessler said. “They understand each others’ way of working,” and that will make the combination more successful.

Second, LifeSheild, and now, DIRECTV, is using CMS, Protection 1’s professional monitoring arm to monitor security customers.

With the exception of AT&T, which is building two monitoring centers, the other cable and telecom players are not using professional monitoring centers.

“This allows DIRECTV to show off its feathers in front of other cable and telecom players,” Kessler said. Those companies are using “generic customer service organizations to do their initial [monitoring] service, [but DIRECTV has a acquired a company] that uses the largest independent monitoring company in the country with five branches.”

He pointed out that CMS has extremely experienced people answering phones who know about intrusion and life safety, including carbon monoxide. The company also has a group of people who are specially trained in health care for calls related to personal emergency response.

All of this is important, he said, because it will improve the customer experience for DIRECTV’s security customers. Going with a professional monitoring company will help convince customers that they can trust DIRECTV as their security provider because customers believe that the “police will be there in five minutes, or a health specialist will stay on the phone for 35 minutes with a customer,” he said.

In general, the public’s perception about cable companies’ service is not good. This is a hurdle for cable companies who enter the security industry. By partnering with CMS that has “proficiency and experience dealing with customer emergencies, whether it’s security or health,[DIRECTV] is in a better position to succeed,” Kessler said.

Kessler said there will likely more deals like this where an outsider like a satellite or cable company will buy a home security provider. In addition, Kessler expect to see more “partnerships as telcos and cable operators realize the value in having a high-quality partner on the service end of the business.

George DeMarco, chairman of ESX, and former owner of Greater Alarm said DIRECTV’s strategy is pretty straightforward.

“DIRECTV has 20 million customers. If the current market penetration for electronic security systems is approximately 20-25 percent, then their customer database is a gold mine.”

DeMarco said it’s all about finding new, complementary, recurring revenue streams that “boost their ability to attract a greater share of the customer’s wallet. Offering security and home management systems with interactive service capabilities, especially video, gives DIRECTV an opportunity to overlay additional home services for customers, while growing top-line revenues and increasing bottom -line profits.  
 
“With the advancements in product technologies, cloud-based services, and mobile devices, Multiple System Operators (MSO) and telecoms have been eyeing the electronic security industry of late. That said, I believe DIRECTV and other MSOs are looking for ways to augment their current offerings.” 

DeMarco said the those industries’ subscribers are willing to “cut the cord” from content packages because of the impact of Hulu, Netflix, and Amazon’s Prime Service. “In other words, MSOs can increase new phone and broadband subscribers while losing paid TV subscribers. Consumers have more choices today for content and delivery of broadband services. As a result, MSOs are exploring other sources of revenue for growth opportunities and the electronic security industry seems to be the likely candidate.”

 

Your RMR on steroids

Pump up growth by adding what’s hot, experts say, and also by focusing on what might not be
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05/29/2013

YARMOUTH, Maine—Home automation and interactive services get most of the headlines when it comes to generating additional RMR, but alarm companies may be leaving money in the field if they’re overlooking more basic opportunities, experts told participants at a recent ESX webinar.

ESX welcomes Newtown, Conn. police chief

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04/22/2013

IRVING, Texas—Newtown Conn. Police Chief Michael Kehoe will be the featured speaker at The Electronic Security Expo’s IceBreaker Luncheon, held Tuesday, June 18 at 12 p.m., according to a statement from the organization.

Floor space filling up fast at ESX

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Wednesday, March 20, 2013

ESX is one of the fastest-growing trade shows in the country, a distinction that hasn’t been lost on the industry’s top monitoring and integration companies. The expo floor is already more than 70 percent sold for this year’s event, which will be moving down the street from Nashville’s Convention Center the new Music City Center.

More than 140 exhibitors were on board as of Monday, including 30 companies that weren’t on the floor last year. Among the new participants from the monitoring world are Criticom Monitoring Services (CMS), Metrodial and SAFE Security.

Some of the busiest real estate at ESX 2013 is likely to be found at the NexTech Zone, where exhibitors focused on home automation, energy management, IT and interactive services will display the latest products and services. With Time Warner, ADT and other big players increasingly moving into this space, it’s probably a good idea for central stations to stay ahead of the curve (or at least not fall behind it).

There also will be 10 educational sessions at ESX focusing on central station operations and technology. Topics range from how to find and retain quality operators (and customers) to the monitoring world beyond PERS, with some of the top names in the industry leading the discussions. To find out more about what ESX has to offer—pencil in June 17-21 if you haven't already—or to register, click here.

CAA symposium to feature four top industry execs

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10/10/2012

SAN FRANCISCO—Leaders from four security companies will speak at an executive symposium at the California Alarm Association’s 2012 Winter Convention, to be held here Dec. 5-8.

'Last big bite' in fight against false dispatches

SIAC director says alarm industry needs to step up and properly train customers
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10/10/2012

YARMOUTH, Maine—A conversation at the 2012 Electronic Security Expo in Nashville reminded Ron Walters just how far the alarm industry has to go on the home front to reduce false dispatches.

Telguard kit upgrades 2G communicators facing ‘sunset’

Commercial units can be converted to 3G/4G while preserving UL certifications
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09/26/2012

ATLANTA, Ga.—Telguard, a provider of wireless alarm monitoring solutions, has rolled out a conversion kit that allows dealers to upgrade their commercial 2G cellular communicators to 3G/4G without voiding UL certifications at the installation site.

Putting the Vivint sale in perspective

Michael Barnes and George De Marco on the $2 billion valuation of Vivint, whether its growth plans are realistic, and its plans for expansion into commercial security
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09/19/2012

YARMOUTH, Maine—News today that the Blackstone Group, a $180 billion private equity firm, will acquire home automation and security company Vivint in an agreement worth more than $2 billion is another “huge shot of support for the industry,” Michael Barnes, founding partner of Barnes Associates, a consulting and advisory firm that specializes in the security alarm industry, told Security Systems News.

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