October 1, 2010

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Question:

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Hi Ken,

    I hope Cell & IP monitoring is as new and foreign to you as it is to me and

that I'm not so old as to not even use the correct technology terms.  So

here is what I know.

    Like the TV industry doing away with analog TV signals and going completely

digital, the same is going to happen to telephones.  The plan is to go

completely digital somewhere between 2014 and 2016.  This means no more hard

line phones.  Telephones will be either cell phones or Voice Over Internet

Provider (VOIP).  This includes alarm systems.  I am just now learning about

cell communicators and am going to install my first next week.

    The cell communicator is like a cell phone with a sim card.  I purchase the

communicator with the card and can sell it or lease it to the customer.

Once installed, I contact my cell provider to activate the sim card.  I

lease the use of the card from my provider for, say, $5.00 a month.  I then

charge the customer $20.00 a month for the cell service.  This is the future

and in the next few years, all systems will need to be converted.

    Here is why I think you need to develop a new contract for wireless cell

monitoring.  If I install the cell communicator, and the owners move, the new

owners can not have the sim card activated by any other company other than

my provider.  (At least that is my understanding.)  Anyone can monitor the

alarm system but only company X can activate the sim card.  My plan is to

lease the communicators along with the cell service.  So, when the majority

of the existing systems are converted, the customer will own the alarm

system but lease the communicator.  Should the monitoring (non lease) and

communicator (leased)  be covered under one contract or do you think the

communicator should be covered under a separate contract?

    I'm sure you know more tech savvy people that can give you more information

about cell communicators.  The cell company I'm using is "Connect 24".

Perhaps they can shed more light on the subject.  If you want to use the

above in your newsletter, please only use my first name.

Tony

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Answer:

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    The Standard Contracts, including the Monitoring Contract and other contracts with monitoring provisions, do not require any changes.  The contracts provide for all types of communication networks.  Presently the Disclaimer Notice warns against VOIP.  That isn't going to change until POTS is no longer available or VOIP becomes as reliable as POTS.