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All monitored alarm systems depend upon communication networks that are beyond the control of the monitoring company. Examples of these communication networks include POTS lines, air waves, satellite, and cellular towers. Direct wire connection from alarm panel to central station is a distant memory.
All types of alarms and monitored communication share a common characteristic, all are designed and intended to detect and or reduce loss; all are in the nature of security, either for person or property or both. Another common feature of the services are that alarm companies price their services competitively having no correlation to the risks involved in the services. Intrusion and fire have obvious risks. It seems I get a call at least weekly from companies intending to enter the PERS market on a nationwide basis. More recently I am getting calls for GPS services.
Although VOIP communication may be more compatible with alarm systems than several years ago contracts still contain a recommendation that POTS be used instead of VOIP. The Disclaimer Notice I offer warns against the use of VOIP. My Standard PERS contract specifically provides that PERS will not work with VOIP, and a few weeks ago an alarm company told me they did offer PERS monitoring using VOIP.
According to Mark Fischer, VP/CTO of Smith & Wesson Security Dealer Program - "We believe that within the next 10 years and probably sooner there will be a near total disappearance of the copper POTS lines. Verizon has already announced that they plan on offering a VoIP version of their FIOS service, so system that were operating within that safe haven may soon find themselves vulnerable to the communications issues associated with VoIP. Our prime product line manufactured by DMP works extremely well over most VoIP connects, however we are encouraging our dealers to use IP and GSM communications where and whenever possible to help future proof our system."
From a contract perspective, while technology has changed, the contract terminology addressing communication has needed little revision. The contract makes clear that signals pass through communication networks that are independent of the monitoring company and over which the monitoring company has no control. The familiar disclaimer of liability - contracting away liability even for negligence or breach of contract - follows. It's important to remember that no matter what service you are providing and whichever communication net work you are relying upon the contract terminology needs to carefully describe the service, the limitation of the service and take advantage of your right to contract away liability - not only for conditions and contingencies beyond your control, but for your own negligence and breach of contract.
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Ken,
Thanks for the forum..
To quote Earl Pitts, WAKE UP AMERICA!!!!. VOIP is coming to your customers! The POTS line is DEAD!
Will it be this year or in 2015 or even 2020? We don’t know for sure but we know it is coming so why as an industry do we continue to hang on to technology that is on the way out when newer, better systems are available to us. We expend countless hours complaining and resisting advances in technology when it may be much cheaper to simply plan and begin an orderly transition to the new technology. Ever since Holmes sold off his interest in Bell’s Telephone our industry has been at the tail end of technological advances, we have looked at what we can’t or don’t want to do, it is time that we start to look at what we CAN do and embrace the advances in communications that are available to us. We should LEAD our customers into the new technology and secure our place as their Tech Experts. If we continue to resist then the “Nerd Squads” will become the customers Tech Experts and eventually they won’t need an antique alarm system provider. Just my 2 cents worth. “WAKE UP AMERICA”
Mike Fletcher
Heeth LLC
Fire Alarm Training and Consulting