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The Connected Home:Challenges & Opportunity
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Home network routers are quickly becoming the focal point of many U.S. broadband households. Routers have rapidly evolved from a simple means of shared Internet connection for multiple computing devices to becoming the center of entertainment and data throughout many homes.
With augmented connected home adoption comes a test… interoperability has become the major point of pain for the connected home. Within the connected home environment, services should be easily integrated, content should be accessible on any device, and human-aware services should easily migrate as the user does throughout the home. Yet for the most part, such integration is lacking, and the home networking environment is fundamentally unsupported.
Ironically, the vision that is presented by many operators is a home network where all technology works seamlessly with little to no setup required. Yet the reality consumers routinely face does not complement this vision. For example, something as simple as getting a wireless printer to work on the home Wi-Fi network requires rooting around into the mysterious conduit of system drivers and network settings. Most people simply give up
somewhere in the process of interconnecting their home network.
As the connected consumer electronics (CE) device adoption rate continues, this difficulty will naturally escalate. According to a recent report by Parks Associates, currently 75% of U.S. homes have broadband. Of these households, over 80% have a home network. Over 60% own connected CE, including over 80% of consumers age 18-34. Parks Associates also has identified that the average U.S. household now has nearly seven (7) connected CE devices.¹
Consumer home networks are not simplistic. When asked how many devices are included in the home network, as the
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The Connected Home Evolution...
Home network routers are quickly becoming the focal point of many U.S. broadband households.
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April 2014www.securitycoverage.com
Source: Parks & Associates 1
below chart shows, 71% indicated they had between two (2) and five (5) devices connected to their home network. Nearly 25% indicated they owned six (6) to ten (10) devices connected to their home network.² It becomes obvious that this complexity will grow, as more devices in the home become network connected.
Moving beyond a single connection to the entire connected wireless network tends to be too daunting for most consumers. What happens when the latest software upgrade leads to the data network crashing? Who does the consumer call when the problem is somewhere in the home computer, its connection to the peripherals, and the network operator’s broadband connection to the home?
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Total Number of Devices (North America 2013)
Six to Ten
Ten or More One
Two to Five
71%
22%
4% 3%
Source: Stratecast 2
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April 2014www.securitycoverage.com
The explosion of IP-connected devices such as tablets, smart TVs, gaming consoles and other consumer electronics in today’s home has created numerous challenges for operators. Rapid consumer adoption and dependence on the home network has escalated the consumer demand for premium technical support. Consumers want to leverage the capabilities of their devices but often encounter challenges such as connecting to the home network and interoperability. In fact, nearly 1 in 3 consumers experience problems with their tablets or smartphones, while half have issues with their computers.
The explosion of IP-connected devices such as tablets, smart TVs, gaming consoles and other consumer electronics in today’s home has created numerous challenges for operators.
Connected Home Complexity Creates Challenges...
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Users of Premium Technical Support Services by Platform
Computers
% Use premium tech support
% S
peci
fyin
g
% Experience problems
Tablets Smartphones
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Source: Parks & Associates 3
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Many operators are now discovering that their sensitivity of what’s “in-scope” and the customer’s perception of what’s “in-scope” are very different. The operator’s job is to deliver signal to the modem, but the consumer also expects support to make their technology and devices work on the provider’s network and with their home network. This creates a very confused customer experience...
Consumers who once reluctantly accepted that operator support ended at the gateway are now demanding more complex and premium tech support and services. Consumers want support that extends into and throughout the multi-device connected home. The lack of provider answers to these questions frustrates the customer and denies the operator a lucrative source of new revenue.
The lack of provider answers to these questions frustrates the customer and denies the operator a lucrative source of new revenue.
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Devices Considered “In-Scope” by Customers for Technical Support
Computer
Smartphone
Flat-panel TV
Modem
Printer
Tablet
Game console
Home network
External hard drive
Streaming media player
% Selecting specified device
Source: Parks & Associates 4
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Home networks are becoming more complicated as more devices enter the home. Globally, devices and connections are growing faster than both the population and Internet users. This trend is accelerating the increase in average number of devices and connections per household and per Internet user. Each year, various new devices in different form factors with increased capabilities and intelligence are being introduced (and adopted) in the market.
As the customer experience is closely examined, we see another layer of intricacy brought to the forefront. Coupled with the increased complexity and increased data usage from mobile devices and gaming consoles, there is also a perplexed state of who actually “owns” the connected home networking experience. This poses a risk to the operator brand and customer loyalty.
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Global Smart Devices and Connections Proliferation (Compound Average Growth Rate)
Conn
ecte
d de
vice
s in
mill
ions
Source: Parks & Associates 3
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April 2014www.securitycoverage.com
Consumers look to their broadband provider (highlighted below) for some devices, but they don’t have a true “primary” point of contact. This uncertainty poses threats to customer experience consistency as well as brand image.
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Premium Tech Support Service Provider by Platform“Which kind of company provides you with subscription technical support service for your computer?”
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Smartphones
54%
28%
10%
5%
3%
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Computer
26%
28%20%
14%
12%
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Tablets
30%14%
27%
27%
2%
A security software company
An independent tech support group
A wireless service provider
A broadband Internet provider
A retailer where I purchased the device
A CE manufacturer
Source: Parks & Associates 3
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There’s an old saying that states “before you can think outside of the box; you must first realize you are in one.” The challenges that many operators face with the connected home are easily identified. Years of regulation and common practice have limited operator thoughts in a dumb pipe paradigm, where service ends at the customer’s network interface device. The connected home is changing this dynamic as consumers and businesses demand a more robust support offering.
Consumers clearly need and want robust home networks. More importantly, they are willing to pay for them. The substantial desire for home network support and self management tools creates the perfect proposition for operators to introduce value-added protection, support and warranty services.
Connected Home Complexity Creates Challenges...
“Before you can think outside of the box you must first realize you are in one.”
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Annual Revenue: Consumer Technical Support Services(Millions of Dollars Annually)
Source: Parks & Associates 6
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Operators must become more active participants in the home networking environment. Doing so proves to strengthen the operator brand into the connected home and increases average revenue per subscriber.
Emerging support needs will arise with the growth of home management, home security, and connected medical devices. Operators literally have the opportunity to reinvent customer experience by providing premium support and value-added services. They not only regain subject matter expert status but become the primary point of contact for all data and tech-related needs. At this point, the operator beyond doubt “OWNS” the connected home environment.
SecurityCoverage, Inc. empowers ISP/Broadband/MSO providers, retailers, and technology companies to create new revenue streams and own their customer experience by offering total technology service programs. SecurityCoverage is a leading developer of mobile and desktop security software, data protection, file sharing/backup, and technical support services. Founded in 2003 with a clear mission to simplify the use of technology and provide world class customer service, we remain relentlessly dedicated to protecting consumer devices and personal data. Today, nearly 400 partners from diverse markets like broadband, retail and warranty help SecurityCoverage achieve its mission for consumers everywhere. Product and company information is available at www.securitycoverage.com.
1. Source: The Evolution of Home Networks | Parks Associates ©20142. Source: Home Networking: Moving beyond complexity | Stratecast ©20133. Source: The Evolution of Home Networks | Parks Associates | Cisco Systems ©20144. Source: Cisco VNI Service of Adoption Forecast, 2012-2017 | ©20135. Source: The Evolution of Home Networks | Parks Associates ©20146. Source: Expanding Consumer Tech Support | Parks Associates ©2013
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April 2014www.securitycoverage.com
