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Analyst Blog

AT&T Inc. (T - Analyst Report) – the second largest telecom operator in the U.S. – recently announced its plan to aggressively expand its AT&T Digital Life market from eight to 15 markets. Moreover, the company has also set a target to cover 50 markets by this year itself.

AT&T Digital Life provides complete security solution to customers. The customers who will subscribe to this home security package will get 24 hours police and fire protection inclusive of any mishap that may take place inside the house. Moreover, the customer will also have the option to select different security devices like window sensors, glass break detectors, carbon monoxide sensors and many more.

If the new Digital Life business succeeds, it will offer a strong revenue platform for AT&T, driving top-line growth going forward.

Similarly, the largest carrier in the U.S. – Verizon Communication Inc. (VZ - Analyst Report) – is also offering home security solution to its customers. Moreover, Comcast Corporation (CMCSA - Analyst Report), the largest cable operator in the country, is also offering the Xfinity Home Security service to its clients at an affordable rate of $40 per month.

Another cable operator, Time Warner Cable (TWC - Analyst Report) is also targeting the home security market with its attractive rate plans. According to Parks Associates, the home security market is expected to grow around 27% in the next three years. So, to pounce on this lucrative opportunity as well as to consolidate market position, most telecom and cable players will launch more innovative technologies at attractive rates.

Currently, AT&T Inc. has a Zacks Rank #3 (Hold).