Revenue growth of end user markets for intrusion alarm equipment is greatly impacted by the recent multiple-system operator (MSO) market entry in the American residential security sector. MSO offerings consist almost exclusively of wireless products, and this has affected the wired/wireless product split significantly. After companies such as Comcast, AT&T and Time Warner began offering home security packages in 2010 and 2011, they realized that the attrition rate traditionally associated with security is much lower (around 10 percent) when compared with the rates of their original product offerings such as broadband and telephony services. As a result MSOs began aggressively marketing their home security offerings in an attempt to absorb this low attrition rate into their other business lines in order to maximize potential revenues through fewer customers switching away to other service providers.
Source: IHS