Universal Electronics' Ecolink Buy Helps It Target Media Customers, CEO Says
Universal Electronics is banking on the home security category to pave its way into the smart home market with an acquisition of Ecolink Intelligent Technology. UEI said Thursday it agreed to buy Ecolink, its 25 issued and pending patents “and…
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other related intellectual property and assets used in its smart home, wireless security and home automation business” for $12.4 million. On an earnings call last week, UEI CEO Paul Arling cited the prominent role security systems are playing in the transition to the smart home, saying most sensors and security panels can be easily accessed and controlled with a mobile device. He cited Parks Associates research estimating 14 percent of professionally monitored security systems in U.S. last year were installed by cable and telephone companies. He also cited ABI Research pegging the global home safety, security and connected device market at $4 billion in 2019, up from $1.4 billion this year. Arling said the acquisition would enable UEI to deliver to its subscription broadcast customers -- cable, satellite and IPTV providers -- smart home features. UEI already was working with customers on adding security features and developed a relationship with Ecolink. The new services are being implemented with major players, and they’ll roll out beginning in January with varying delivery schedules over 2016, Arling said. The expansion to the smart home from set-top boxes and remote controls is facilitated by the IP infrastructures UEI customers have in place in connected set-tops, cable modems and routers, Arling said. Smart home and security features are being implemented through the entire architecture, said Arling. The set-top boxes have a “flavor of ZigBee,” he said, referring to RF4CD that’s embedded in UEI remotes. Major broadcast service providers and CE companies are moving beyond infrared-only technologies to also include two-way RF protocols including Bluetooth Low Energy, RF4CE and Wi-Fi, “which enable a broader array of advanced features,” said Arling. An example is Comcast’s Xfinity Voice remote that uses UEI’s control technology to allow viewers to change channels, find shows and get recommendations by voice commands, he said.