AT&T Inc. Dips Its Toes in the Connected Home

AT&T Inc. is trying to connect consumers' homes with its Digital Life program, but will that in any way affect the company's bottom line?

May 30, 2014 at 7:55PM

AT&T (NYSE:T) gave a keynote address at the recent Connections -- "The Premier Connected Home Conference" -- but its topics, such as second screening and TV apps, aren't yet big drivers for its business. In the video below, analysts Eric Bleeker and Max Macaluso discuss some connected-home themes from the conference, focusing in on AT&T's Digital Life product, the company's next shot at bundled services. 

Like Verizon's (NYSE:VZ) Fios, AT&T has a small fibre-to-home business in its U-verse, but neither has the the built-out scale to challenge the impending Comcast/Time Warner behemoth. High initial investment hasn't given adequate returns in an industry that's very cognizant on financial metrics like returns on capital. 

One of AT&T's growth strategies is Digital Life, where the company is essentially connecting and automating a home with products like security and connected lights. It will appeal to the person who wants a professional making his or her home interconnected with the Internet and electronic devices, versus the DIY options available now.

In the video below Eric and Max discuss why the companies are making the push into home security, and what challenges they'll face in making the connected home a meaningful impact on their bottom lines. 

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Jun 12, 2015 at 5:01PM

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