Monitored alarm accounts using plain old telephone lines (POTS) accounted for nearly 90 percent of recurring monthly revenue (RMR) in North America in 2009, according to a new report from IMS Research.
However, the total percentage is forecast to decrease 20 percentage points to nearly 70 percent by 2014. Similar declines are estimated throughout Europe, although there is a great deal of variation from country to country.
“It’s interesting how each market is responding differently to the decline of POTS,” says market analyst and report author Ewan Lamont. “While it is widely accepted that the use of POTS for alarm communication will come to an end sometime, the lack of a definite end-game reduces the pressure on dealers to switch. Also, there are still questions over what will successfully replace it, and until these issues are resolved the market will be slow to move to an alternative.”
IMS Research’s latest report on the remote monitoring industry predicts that half of the monitored alarms in France will have a landline connection by 2014. This contrasts with the Spanish market, which is predicted to show only a slight drop in market share for landline connections.
“Each market has very different drivers behind the change, with some riding the emerging wave of IP, such as Germany; while others, such as France, prefer the wireless convenience of GSM,” Lamont says. “On top of all that, there is radio to consider too. Timescale is also important to consider. Each country is progressing at a different rate, making planning for the future very difficult.”