AT&T’s impact on the residential security market

Dealers say telco’s entry could benefit entire industry

"When they invest in marketing and advertising, I think it will increase the consumers’ awareness and the credibility of our industry," Glore said. "And then more people are going to want systems and want to buy and I think that will  benefit the small dealers, even the ones that don’t have big advertising budgets."  

Though the entrance of AT&T and others into the market should spur dealers to advance the technology solutions they provide, Glore believes that there will always be those customers that are just going to want the basic security package and some companies may continue to be successful with that.

McVeigh believes that the entry of companies like AT&T will also spur innovation among the equipment manufacturers, which could also bode well for dealers.

"These companies that are coming in with these massive advertising budgets are very attractive to the vendors, so the panel manufacturers are going to be wooing these companies and it’s almost like NASA coming in and saying 'we need something specialized.' These companies are going to develop an even more specialized product for our industry and we’re going to benefit," McVeigh explained. "The smaller dealers are going to benefit because they are going to get that offering to us as well, so we’re going to see a lot more new technologies coming out because of these big dollars coming into the industry. It’s going to create for us, a trickle-down effect that we’re going to see all of these neat, new products. It’s very exciting what’s on the horizon."

While he feels this could come to fruition, Callahan feels that these technology vendors will still take a "wait-and-see" attitude.

"I think if there is a success level that could very well play out," he said. "I don’t think the manufacturers are going to jump through hoops initially until they see what kind of scale is being obtained."