Home-network innovations aid connectivity, self-installation

Actiontec’s zControl system addresses another home networking challenge – how to connect other devices to the home network for additional functionality. It uses Z-Wave, a wireless mesh technology for the home that can be found today in more than 300 products including light adapters, motion detectors, thermostats and other home-automation devices, said Brad Kayton, COO and founder of Actiontec.

“The triple play has been commoditized at a surprising speed,” Kayton said. “In 2006, it was $225, now it’s down to less than $100 a month, what with all the first-year pricing and free equipment deals companies are offering. The translation is that billions of dollars are being lost. So the strategy is changing. Service providers need new revenues, sticky services that keep customers, and they need them at a low total cost of ownership.”

Zwave products create a mini wireless network within the home, Kayton said, and any product, such as a lamp or even the home furnace, can be plugged into a Zwave adapter. Users can then control these devices from an Internet-enabled TV, PC or mobile phone.

What Kayton envisions for service providers is the ability to offer home network support as a service, supporting things such as home monitoring, environmental controls and more.

“This really extends the home network, because you are talking about not just connecting the set-top box or an extra PC but literally anything,” Kayton said. “There are some implications there. We have seen companies offer home-networking support services, but it’s not usually enough. Once you get your home network installed, by month three or four, you are kind of done. You don’t really need it after that. So the attempt at making home-network support a profit center never passed muster.”

With more devices networked within the home, there is opportunity to create new services and provide real-time support for the whole system, something broadband service providers will be in position to do, Kayton said.