ADT 2012 Annual Report Download - page 95

We also intend to explore other adjacent markets that leverage our existing assets and core competencies.
Where appropriate, we will supplement our organic growth efforts with bolt-on acquisitions, leveraging the
expertise we have developed in effectively integrating acquired businesses.
Brands and Services
Our key brands are ADT®, ADT PulseTM and Companion Service®. We believe our brands are some of the
most respected, trusted and well-known brands in the electronic security industry. The strength of our brands is
built upon our long-standing record of providing quality, reliable electronic security services. Due to the
importance that customers place on reputation and trust when purchasing home and small business security and
automation services, we believe the strength of our brand is a key contributor to our success.
Our electronic security and home/business automation offerings involve the installation and monitoring of
residential and small business security and premises automation systems designed to detect intrusion, control
access and react to movement, smoke, carbon monoxide, flooding, temperature and other environmental
conditions and hazards, as well as to address personal emergencies, such as injuries, medical emergencies or
incapacitation. We believe the breadth of our solutions allows us to meet a wide variety of customer needs. Our
electronic security systems connect, upon the occurrence of a triggering event, to one of our state-of-the-art
monitoring centers. Depending upon the type of service contract and the response specified by the customer, our
skilled monitoring center personnel respond to alarms by relaying appropriate information to local fire or police
departments and notifying the customer or others on the customer’s emergency contact list. Additional action
may be taken by call center associates as needed, depending on the specific situation and recorded customer
preferences.
Through the introduction of ADT Pulse we have pioneered interactive technologies that allow our customers
to remotely monitor and manage their homes and small business environments through their electronic security
systems. Depending on the service plan that they purchase and the type and level of product installation,
customers can remotely access information regarding the security of their home or business, arm and disarm their
security system, adjust lighting or thermostat levels or view real-time video from cameras covering different
areas of their premises, all via secure access from web-enabled devices (such as smart phones, laptops and tablet
computers) and a customized web portal. ADT Pulse also allows customers to create customized schedules and
automation for managing lights, thermostats and appliances, and can be programmed to perform certain
functions, such as recording and viewing live video and sending text messages, based on triggering events.
Many of our customers are driven to purchase monitored security as a result of a perceived or actual
increase in crime or other life safety concerns in their neighborhood, such as a break-in or fire nearby, or as a
result of a move to new home and/or neighborhood. These life events tend to heighten interest in solutions which
can enhance safety and security and provide customers with greater peace of mind. We believe many of our
customers purchase security systems and monitoring services as a result of encouragement by their insurance
carriers, who often offer lower insurance premium rates if a security system is installed or may require that a
system be installed as a condition of coverage.
The majority of our customers use standard land-line telephone service as the primary communication
method for alarm signals from their sites. However, as the use of land-line telephone service has decreased, the
ability to provide alternative communication methods from a customer’s control panel to our central monitoring
stations has become increasingly important. We currently offer a variety of alternate and back-up alarm
transmission methods including cellular, digital radio and broadband Internet.
Under our Companion Services brand, we provide monitoring center supported personal emergency
response system (“PERS”) products and services which leverage our safety monitoring infrastructure to provide
customers with solutions that help sustain independent living, encourage better self-care activities and improve
communication of critical health information. Our core PERS offering consists of a console unit and a wireless
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