Proving the Business Case for the Internet of Things

Telefonica licenses smart home technology from AT&T

Iain Morris
September 18, 2014
 
Spain’s Telefonica has revealed it is to begin trialling AT&T’s home security and automation service in Europe.

The operator will license AT&T’s Digital Life platform, which allows customers to monitor in-home devices such as thermostats and security systems by means of a smartphone app or web interface.

Telefonica (Madrid, Spain) says that it will offer its trial users a wireless home automation platform with an easy-to-use web-based user interface.

The Spanish operator will be the first company to license the Digital Life platform from AT&T (Dallas, TX, USA), but its move could prompt other players to follow in the months ahead.

“The collaboration between Telefonica and AT&T gives OEMs and developers another channel to extend new services to global markets,” said Michael Duncan, Telefonica’s chief marketing officer. “There is no better platform for the connected home than Digital Life.”

“Our service excels in security, ease-of-use, and the platform is built to expand and be open to third party technology,” he added. “We want our customers to have access to the best selection of digital products and services, and we believe that connected home services will provide consumers with greater convenience, control, and peace of mind.”

Telefonica said it was working with AT&T on deploying the software and on-the-ground resources needed for the trial.

AT&T claims Digital Life has a number of benefits for service providers interested in a home automation offering, including lower entry costs into a market that can potentially generate new revenue streams and reduce churn.

AT&T has previously indicated that it ultimately aims to generate $1bn in annual revenue from its Digital Life service — equal to about 0.8% of its total revenue last year.
 
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