U.S. based AT&T Inc. has said that it will collaborate with Spain company Telefonica SA, under which the latter will license AT&T’s home security technology for a limited number of trials in the Europe. This is a way for the AT&T to profit from its budding connected-home concept.
Using the technology, Telefonica will offer a version of AT&T’s home automation and monitoring system to European customers for a trial period of three to six months. An evaluation of the trail will follow at the end of the said period.
AT&T CEO Glenn Lurie has stated that the company is in talks with numerous other potential partners around the globe about similar licensing deals. The technology was released by AT&T in the U.S. in spring 2013.
Lurie also mentioned that due to the enormous amounts of funds that the company invested in inventing the technology, international licensing is a way to monetize the assets on a global level.
He added that international licensing is one of the leading opportunities of earning good revenues in addition to company’s core business in the U.S. Also, he stated that the company is planning to expand its connectivity systems to the healthcare industry and small businesses.
AT&T’s connectivity system allows consumers to connect their home appliances and a myriad of other processes, including smoke detectors, thermostats, lights, locks, security cameras, and so on, to the internet so as to monitor or control them remotely.
Though the company has not disclosed the profitability of this platform from its U.S. business yet, it expects that the platform is capable of eventually growing into a business worthy of $1 billion annual revenue.