White Paper on Evolution of Home Security Industry and Phone
Companies to Online Sales, Delivery & Support Gives Customers Better
Value at a Lower Cost
From Companies Like SafeMart and LiveWatch Home Security Named
Best Wireless Home Security
$44 Bn Security Industry is EvolvingDirect & Wired Interactive & Wireless
Original Direct Line Security Systems
• Intrusion Detection
• Direct Line Required
• Wired System & Sensors
Digital Dialer Security Systems
• Intrusion Detection
• Works with Any Phone Line
• Wired System & Sensors
Wireless Security Systems
• Intrusion, Fire/Smoke, CO, Flood Detection
• Works with or without Phone Line
• Wireless System & Sensors
Interactive Wireless Security and Automation Systems
• Intrusion, Fire/Smoke, CO, Flood Detection
• Video• Interactive Control• Home Automation• Works with or
without Phone Line
• Wireless System & Sensors
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
SafeMart LiveWatch Home Security Named Best Wireless Home Security in America, Source
$6Bn+ Annual ARPU from Home Securityout of $44Bn Industry
Source: SDM Magazine, Morgan Stanley Research & Barnes Associates
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Creating New Opportunities
SafeMart LiveWatch Home Security Named Best Wireless Home Security in America, Source
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
And New Revenue Streams
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Changes in Home Security Connectivity
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Comcast, AT&T, Time Warner and Verizon Expand Into Home Security
SafeMart LiveWatch Home Security Named Best Wireless Home Security in America, Source
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Déjà Vu: AT&T’s Epic Fail$1 Billion Loss in Security Industry
1987: Jim Covert starts SecurityLink
which will grow into the 2nd largest security company
1994: Ameritech acquires
SecurityLink for $1.4Bn
1999: Jim Covert and security
industry team leave Ameritech SecurityLink to
form Cambridge Security
Early 2001: Jim Covert’s
Cambridge Security acquires SecurityLink for
$0.5Bn (a $0.9Bn+ loss for SBC) while SBC Ameritech is
under an FCC Mandate to exit
the business
Late 2001: Tyco/ADT
purchases Security Link from
Cambridge for $1 Billion (a $521MM gain in 6 months)
Source: GTCR & Barrons
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
ADT’s Negative Cash Flow for 29 Months
Source: ADT (TYCO) Investor Presentations
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
$1,000+ Customer Acquisition Cost
Source: ADT (TYCO) Investor Presentations
Expensive Telecom Technicians Increase Cost 2-3X
Telecom Tech: ~$250+ per security install (loaded labor, vehicle, compliance, insurance, et al)
Alarm Tech: ~ $150 per security install(loaded labor, vehicle, compliance insurance, et al)
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Anyone Can Enter this $44Bn Market, Few Will Succeed
Current 20% Market Penetration
120MM+ House-holds
72MM+ Households in Addressable
Market
18MM Households
with Security
1MM-2MM DIY
Path to Success• Find Lower Installation
Costs
• Drive Lower Customer Acquisition Costs
• Eliminate Product Subsidies
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
For More Home Security Information or Details Contact Sam McBride
• LiveWatch Home Security
• Sam McBride• 800-628-6093• [email protected]
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
APPENDIX
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Gross Annual Attrition Consistent at 12%
Source: SDM Magazine & Barnes Associates
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Interactive Services vs. Home Automation vs.
Complete Home Control
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Broadband Market and Market Size
© 2011, All Rights Reserved, Bolster LLC (d/b/a SafeMart and LiveWatch Security)
Fragmented Home Security Industry Means
Source: SDM Magazine & Barnes Associates
