AUSTIN, Texas — Dec. 19, 2000 — Security Broadband Corp. announced investments by a majority of the largest cable operators serving the United States, Canada and Europe, which will expedite the company’s development of its cutting-edge broadband home security service. “Together, we will bring broadband capabilities to the home security market,” said Security Broadband Chairman Jerry Lindauer. “Our partnerships with these leading broadband providers will give us a tremendous development advantage while providing them with an additional revenue source that capitalizes on their expansive installed broadband base.”
Participating with the company are Cox Communications, Comcast Corp., Adelphia Communications Corp., Coditel, Cablevision Systems Corp., Charter Communications,
Rogers Communications, Inc. and Shaw Communications, Inc. Combined, these companies pass more than 50 million homes in the United States, Canada and Europe. Other participants include Prime New Ventures, Alignment Capital, Catalyst Investors and Advance-Newhouse. Their investments in Security Broadband are earmarked for funding technology research and integration, building out the company’s management team, conducting consumer research and exploring security and safety content opportunities.
Founded in June 1999, Security Broadband Corp. is creating the next-generation of home security products by integrating broadband features, including audio and video
capabilities, Web access and wireless capabilities, into an industry that has not kept pace with emerging technologies.
“Enabling technology has come so far since the early 1980s when the industry first looked at the security industry, and we believe the time is right to take it to the next level,” said Security Broadband's CEO William Glasgow. “The benefits of residential broadband, combined with advancements in miniaturization of the hardware, wireless technology and reduced storage and computing costs, make our service a feasible and attractive business opportunity for cable operators looking to expand their offerings.”
Traditional security systems monitor door, window and motion sensors and notify a monitoring station if an alarm is triggered. If the homeowner is not home to receive a confirmation phone call, the police are automatically called. Recent studies indicate that nearly 99 percent of alarm incidents are false, resulting in a tremendous volume of non-emergency calls to police. “Current home security systems use phone-line technology which limits the ability to provide anything more than automatic calls to the police,” said Glasgow. “The result has been unreliable service, an unacceptably high false-alarm rate, increasing police response times and growing skepticism about the effectiveness of home security products.”
Security Broadband's concept of advanced audio and video features require higher bandwidth than most phone lines can offer. The company’s leadership turned to its decades of experience and relationships developed while leading Prime Cable to secure bandwidth and development partners.
“Our service is a perfect match for cable providers,” said Lindauer. “We will provide a new, non-competing revenue stream while enabling them to provide a service that will enhance their value proposition to their customers. Think about this fact — we will add a revenue component equal to the data component without needing any additional bandwidth.”
About Security Broadband: Security Broadband, through strategic partnerships with leading cable operators, will provide residential home security via high-speed broadband Internet services. Located in Austin, Texas, Security Broadband will offer audio and video alarm verification, 24-hour monitoring and a Web site with remote system access features and security-focused content. The service can reduce false alarms, improve police effectiveness and increase users’ peace of mind while they are away from home.
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