Connected Homes: The Next Network Frontier

ABI Research now estimates that the market for home automation systems will grow from 237,000 units shipped in 2007 to more than 4 million in 2013, believing most of that growth will occur in the managed services arena.

What's happening now

Virtually every major service provider has plans in this space, but actual deployments have been limited to date, revolving mostly around connecting phones, PCs and TVs into a user's home media network.

“We have absolutely seen interest from service providers,” said Brian Hendricks, vice president of business development for Actiontec, which makes home gateways and has released stand-alone systems that connect to DSL or cable modems and talk to any home device connected via Z-Wave. “Everyone has their own little areas of interest, but we have several lab evaluations right now where people are looking at various aspects. Our view is we are going to give our service provider customers the options to look into the home — if not manage the home network — and provide applications and services over this network.”

Qwest Communications probably has taken the most aggressive approach to offering services beyond tying the PC and TV together in the home. The company has a specific Web site — www.qwest.com/theconnectedhome — at which it sells and demonstrates services in three categories: communications, home management and entertainment.

Qwest's Home Alert Service, based on the Eaton Home Heartbeat system, sends customers a text or e-mail message to alert them to things happening within their home. Consumers choose where to put sensors based on event triggers that can include water leaks; the opening of doors, windows, cabinets or garage doors; or power failures. An expanded service based on Xanboo technology uses sensors and video cameras both to provide alerts and to allow customers to act on the knowledge of what is happening at home by controlling lights or other appliances, said Ken Rambo, director of product management for Qwest.

“We are in the early stages of this; we started this quarter but we will be expanding,” Rambo said. “The technology we use may be available on the market, but consumers may not know how to use it. The underlying technology we use may even change over time. Our focus is on solving customer problems, and we know that all customers are not the same, so we want to offer them a range of solutions and let them customize to meet their own needs.”

Qwest also is unique in that it is not tying its solutions to a broadband link but instead is enabling services over a landline phone.