“The way that we’re making money is obviously through the hardware sell, but also through monthly recurring revenue with our fee,” said Campbell. “We really think we have sort of a disruptive channel strategy in that you can buy this at a Target, you could buy it at a grocery store if you wanted to and certainly places like Best Buy, Home Depot and that sort of thing. We’re also seeing a lot of traction with the independent wireless retailers that are out there.
“Obviously, if you’re paying $50 to $70 a month, that’s a lot of money for everybody these days, but for a significant segment of the population it’s too much money. We think we’ve really broadened that market and opened it up to a much larger audience.”
According to Tree, Oplink’s home security systems use Wi-Fi as their primary alarm signal communication method with a 3G option as a backup.
Oplink Security is a division of Oplink Communications, which specializes in fiber optic networking solutions. Based in Fremont, Calif., Oplink Communications is a publicly-traded company and has more than 3,000 employees worldwide.
“We have a lot of technology that applies to cloud-based technologies, networking and plug-and-play technology as well, so (Oplink Security) was an idea that sprung from a lot of the technology that we had,” explained Campbell. “Talking to our customers and the fact that we realize security is such a big issue, although residential home security is much different from network security, we kind of had this security mindset and this technology foundation that made us want to get into this industry.”
There are also no service contracts with any of Oplink’s systems and customers can cancel their service at anytime without a fee. According to Campbell, the systems are just now beginning to hit store shelves and the warehouses of online retailers and will be available more widely later this year.