Issue link: https://read.dmtmag.com/i/31502
SECURITY SYSTEMS NEWS MAY 2011 www.securitysystemsnews.com MONITORING 25 AT&T TERMINATES XANBOO DEALER AGREEMENT By Daniel Gelinas LAS VEGAS—AT&T, which in December of 2010 acquired home security and automation provider Xanboo, is telling dealers to stop selling Xanboo products by July 5. In a March 31 letter, AT&T gen- eral attorney Meredith Mays writes: “AT&T is currently in the process of integrating Xanboo into AT&T’s portfolio of services and affiliated companies. At this time, AT&T anticipates modifying or eliminat- ing current Xanboo products and services and winding down its existing processes.” The letter tells dealers “you should not market or sell Xanboo service after July 5, 2011.” Sue McCain of AT&T’s corpo- rate communications told Security AT&T+T- Mobile=? Continued from page 1 but bad news. “Ultimately this is going to affect everyone in the industry. If you look at today’s GSM offer- ings, the vast majority of security guys are going with AT&T as a carrier because they’ve had the best coverage traditionally, but as AT&T’s coverage has started to slip, especially on the low end 2.0 and 2.5 G devices, you’re starting to see more and more people use T-Mobile as an alternative,” Mace CS’ Morgan Hertel told Security Systems News. “It’s not that coverage is going to go away or get worse or better, it’s that we don’t have a choice anymore.” Others are not so sure. “The sole source issue is a moot point. Virtually the entire indus- try is using AT&T,” said Shawn Welsh, VP of marketing for Telular, a manufacturer of wireless solu- tions. “New entrants to this space may find a less flexible AT&T, but ... our prices won’t change.” DMP executive director of mar- keting Mark Hillenburg feels the merger is more about network robustness. “The fact is if AT&T decides that they’re going to pass along a 50-percent price increase, then Verizon will come into play, because we’ll develop it,” Hillenburg said. “Regardless the two companies are now contrac- tually bound to have reciprocal roaming agreements ... the net- works will be merged together one way or another. Either way it goes, it’s a net plus.” Hertel pointed out a multiple communications pathway loss. “[This is] like only having one long distance carrier in the U.S.,” Hertel said. “It’s not a good thing.” SSN Systems News in an email interview: “We aren’t in a position to discuss future business plans for the service.” She added that, “in the meantime, it’s business as usual for the end users of Xanboo service.” Former Xanboo president and CEO Bill Diamond also declined comment via email: “After the acquisition my role is strictly as a consultant to AT&T, so I really can’t comment on the [letter].” Former owner of Greater Alarm and current ESX chair George De Marco said he was not surprised by AT&T’s decision to abandon its current sales channel strategy for Xanboo. “This strategic shift by AT&T’s management reflects their goal to deal directly with the consumers and by-pass the existing go-to- market strategy for Xanboo,” De Marco said. De Marco said, “Large, well- capitalized players (Verizon, AT&T, Comcast and Ascent Media) are beginning to enter the market armed with products and services that are app-driven, enabling them to deliver bundled services solutions to consumers.” Companies such as ADT, Vivant and ASG Security, are wisely “refresh- ing their go-to-market strategies with innovative technologies and services that are resonating with consumers.” DeMarco said. He advised every alarm company to “preempt attrition by doing the same thing.” SSN