Origin AI recently introduced their new platform called TruPresence, which operates as a value-added service for internet service providers to offer to their customers. This product will be available for multiple solutions, such as security, health monitoring (specifically for the elderly), and energy. By utilizing Wi-Fi to offer these solutions, the goal is to enable more seamless connectivity that does not rely on specific devices or their physical locations.
Parks Associates research shows that consumer interest in value-added services (VAS) grew significantly following the pandemic, as the population became accustomed to spending more time at home for work and leisure. The move to Wi-Fi 6 also helped increase the demand for VAS, but as demand for new routers has fallen due to the consumers replacing their routers during the pandemic, so has the demand for VAS. However, the decline in interest is slight, and the upcoming Wi-Fi 7 standard, as well as the increased adoption of smart home devices, will help reinvigorate the demand for VAS.
As demand for these services increases, the challenges for ISPs are to decide how to include them and how to structure pricing. Parks Associates research shows that NPS scores are highest for VAS that are packaged with traditional bundles, rather than alone. And the more VAS included, the higher the NPS score. However, with more services in a single bundle, the cost goes up. Currently, at least half of US households receiving a VAS service receive it for free. A VAS bundle with many services may not be offered for free, and that may need to be a tradeoff that ISPs consider when deciding how to package their service offerings.
ISPs and smart home companies also need to consider their target market, and how that impacts their offerings. While Parks Associates research indicates that interest in VAS drops significantly for consumers over the age of 45, we would expect to see a shift in the near future as those in lower age cohorts grow up with these services and continue to use them across their lifespan. Additionally, the need for things like fall detection/health monitoring for aging parents may increase that adoption for older age segments by their children. This market will create multiple growth opportunities for platform such as TruPresence as ISPs look for solutions that allow them to deploy VAS offerings quickly and efficiently.
Origin is one of many Event Sponsors at the 18th annual CONNECTIONS™ Summit at CES. Parks Associates is hosting multiple sessions on January 9 focused on smart home, energy, home security, and other prime VAS topics.
