There is nothing better than feeling safe in your own nest, and having security cameras as extra pairs of eyes and ears around the property surely helps. The problem is, most security cameras rely on internet connection for real time monitoring, which excludes those who are living or working in low bandwidth areas to access smart house monitoring technologies.

However, this will soon change, as white label DIY home security provider Scout Security (ASX: SCT) has partnered up with US internet service provider (ISP) partner, Windstream, to sell Scout products to customers with internet connections as low as 10 Mbps. This will provide access to Windstream’s existing customer base which Scout has not previously been able to access, and expands Scout’s addressable market by approximately 30%.

Under its business unit Kinetic, Windstream itself has been providing premium broadband, entertainment and security services through an enhanced fiber network to more than 1.1m broadband customers and businesses in more than 1.4m premises in rural areas across 18 US states. The technology was named Best in Class for Partnership for Home Security by the Broadband Multimedia Marketing Association for providing its white label partners with a competitive DIY home security platform and smart home suite.

Until now, Windstream has only targeted new customers with the Scout-powered Kinetic Secure Home offer. However, Scout and Windstream will commence e-commerce sales of the Scout-powered home security solution to existing Windstream customers in May 2023 which represents a significant potential additional boost to Scout revenue, in which Scout is expecting immediate impact on its upfront and recurring services revenue. To date, Scout has achieved conversion rates via phone sales to new customers of up to 10%. Should the e-commerce conversion rate to existing customers be only 1%, it would still more than double the Company’s existing base of recurring revenue over time. Historically, the average Windstream conversion rate has been 6%.

Scout is confident that it can provide customers with a strong user experience at speed levels as low as 10 Mbps, having worked with Windstream for months to extensively test and benchmark user experience at these speeds. The Company is also hoping that the partnership will boost the appeal of its white label program to other ISPs with other potential partners which serve rural customer bases.

Scout has also partnered up with other smart home tool providers such as Zego and NYSE-listed Lumen Technologies. With Lumen, Scout completed the alpha version of Lumen’s Scout-powered Motion Sense Security, which is currently awaiting Lumen’s approval for pilot launch. The solution is extendable to other ISPs and telco carriers, direct and through managed WiFi resellers, that account for over 70 million homes globally. 

Primarily serving the US residential customer base, Scout has recently entered the Australian market in October 2022, distributing its products via e-commerce giant Amazon, boasting features such as camera integration with Amazon’s Alexa.