Please ensure Javascript is enabled for purposes of website accessibility

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

By Max Macaluso and Eric Bleeker - May 30, 2014 at 6:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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?

AT&T (T 1.67%) 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 (VZ 1.75%) 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. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
VZ
$51.64 (1.75%) $0.89
AT&T Inc. Stock Quote
AT&T Inc.
T
$21.31 (1.67%) $0.35

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.