23 Jun Networked house next big thing for Telstra
A networked home that allows the front door to be opened or the heating turned on from a smartphone or computer is the next business frontier for Telstra.
Telstra is pushing into the networked home automation market with a new offering that will allow customers to open their front door and turn on the heating or the coffee machine from their smartphone or computer.
The nation’s biggest telco is looking to the tech space for future earnings and on Wednesday unveiled 10 so-called smart devices controllable via a smartphone, tablet or desktop computer through an app.
Australian households are on the brink of a digital revolution, which will transform the way people interact with their homes, according to Telstra executive John Chambers, who says the average household is expected to have 29 connected devices by 2020, up sharply from around nine at present.
The networked home industry is expected to be worth more than $1 billion annually in Australia over the next five years, Mr Chambers said.
“The key to Australians embracing smart technology in the home is to make it easy and simple to use,” he said.
Telstra has been working with Icontrol Networks, a US-based company that develops smart home products, to build a user-friendly platform that will work across various devices and operating systems.
Foad Fadaghi, principal analyst at research firm Telsyte, said the company is trying to tap a market that has traditionally only been targeting very affluent households.
But the industry has changed in recent years with the arrival of do-it-yourself products, Mr Fadaghi said, which means Telstra has its work cut out convincing customers to take its products on lengthy contracts.
“Today, most home automation products that consumers look at are purchasable at retail outlets like JB Hi-Fi,” he told AAP.
Telstra’s push into home automation could also be about building stickiness to its mobile and broadband operations, especially as the National Broadband Network NBN rolls out.
Telstra will release its smart home packages before Christmas with the two initial offerings both requiring 24-month contracts.
Mr Chambers says the monthly cost will be equivalent to “a couple of movie tickets”.
One package option will allow customers to keep an eye on things when they’re away from home with motion sensors and a camera that send alerts to their device.
An automation and energy option will come with smart power plugs and motion sensors to help monitor energy usage.