Sigma Systems believes that cable operators must expand their service portfolios to include new revenue-generating services such as home automation and home security for the residential market and cloud applications for the SMB (small and medium business) market to combat revenue loss from declines in legacy offerings.
Chief among the new services that will drive further revenue and have the potential to increase customer loyalty are home automation, home security and eHealth. In 2011, GSMA estimated the global market for home automation, home energy management and smart meters was more than $8 billion in 2010 and it would leap to $44 billion by 2016. For consumers, there is a clear connection between purchasing high-speed broadband and home automation services from the same provider, allowing them to monitor their thermostat and utilities usage remotely, manage internet-connected home entertainment systems or unlock their doors with one click. Service providers that can offer these services as part of their bundles, giving consumers with a single source for all of these services with one integrated bill, will have a strong differentiation against their competitors.