Strategy Analytics: Homeowners willing to pay for connected home services

Jan. 10, 2013
Operators of fiber-to-the-home (FTTH) networks could find success beyond triple-play service provision. Strategy Analytics says its 4Q 2012 survey of broadband households in France, Germany, Italy, the UK, and the U.S. has identified surprising interest in and willingness to pay for remote monitoring and control systems in addition to professionally monitored interactive security services.

Operators of fiber-to-the-home (FTTH) networks could find success beyond triple-play service provision. Strategy Analytics says its 4Q 2012 survey of broadband households in France, Germany, Italy, the UK, and the U.S. has identified surprising interest in and willingness to pay for remote monitoring and control systems in addition to professionally monitored interactive security services.

Over 50% of households without security are willing to pay for professionally monitored services if combined with monitoring and control capabilities, according to Strategy Analytics’ Smart Home Strategies (SHS) advisory service report, “Smart Home Systems: Consumer Adoption and Attitudes.”

Strategy Analytics’ research also revealed significant willingness to pay for remote healthcare and energy management services if the price is right. Potential adoption of smart home services is highest in the U.S., UK, Germany, and Italy and less so in France, with the exception of retail DIY monitoring and control. Remote healthcare services have the greatest market potential in Italy, providing that recurring fees are kept under $10 per month.

“The percentage of broadband households with both the interest in and willingness to pay for selected connected home solutions is higher than expected,” said Bill Ablondi, director, Smart Home Strategies advisory service, Strategy Analytics. “We believe that growing smartphone and tablet use is accelerating consumers’ desire to be connected to everyone and everything important in their lives, including their family and homes.”

The research quantified fees consumers are willing to spend for the selected services and the attitudes and behaviors most indicative of potential adoption.

The percentage of broadband households willing to pay for selected smart home capabilities in the US and major Western European countries is as follows:

  • 55% are willing to pay for self-monitored security
  • 54% are willing to pay for professionally monitored security
  • 47% are willing to pay for remote monitoring and control
  • 32% are willing to pay for remote healthcare services
  • 30% are willing to pay for remote energy management.

For more information on FTTx/access systems and suppliers, visit the Lightwave Buyer’s Guide.

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