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Eighty -- making its public debut today after a real rocky start the stock rallied into the close ending the session to upside -- and in the final fifteen minutes Davis.
So how can the security firm prove to investors that they are more than just a warm company joining us now.
The first on Fox Business interview is no rain -- honey.
Good to say congratulations.
Now you guys used to be known as the crown jewel of Tyco why not stay there if you -- the crown jewel of the company.
Well maybe -- brain would probably be in a better position that I mentioned that but I'll give you my perspective from the eighty -- side.
Our business model is really very different from the rest of Tyco where -- traditional subscriber base business where we make an investment up front.
To bring on a new account and then we get that return over time with great recurring revenues.
And hold on to customers as long as we can sort of just a different business model I think as part of a conglomerate -- just a little difficult to value us.
-- -- -- -- You're market -- so much on the housing sector -- -- recovery there and want you dominate the market it's a small one just one in five households out there have home security system right.
Well Lauren I think that's the real opportunity for us when you think about it I mean we've been and then down housing market really the last five -- six years since I've been involved in the business.
Yet we've managed to grow our business through the economic downturn we probably grew -- met.
Two to 3% range and I think even with a modest recovery we can accelerate our growth.
And the challenge in the opportunity is how we take that penetration rate up to households.
Well above 20%.
And when you compare us to any in service you know any home service.
We're significantly below -- I believe there's a tremendous opportunity.
As long as we can continue to strengthen the value proposition.
Not just for security but now with -- -- -- also offering for home automation.
So are you going to be working now more with the home builders is as as the housing market -- new homes begin to get out a little kick.
In this sluggish economy are you gonna work where the home builders.
Rather than necessarily the home owners.
What will be working with both we've had great partnerships with the builders in the past deal with companies like -- T.
And we're continuing to invest to build out that partnerships are we wanna participate -- new homes and we also wanna participate with existing homes because I think.
The value proposition is just very strong on both sides.
Yeah and -- -- there's a whole new market that you're tapping into so it's not just security but literally through a live video feed.
You can tell your aging grandmother is delaying any -- based nine.
Information that you're getting into your phone -- -- your your system in your software is that correct.
Absolutely I mean you get to look in on the policy -- real time you -- you can actually set it up to integrate with your security system.
So you can have event driven recording sent to your cell phone -- your PDA or your iPad.
Any web enabled device and really gives you it keeps you close to home when you can't be -- Now what about it in the health and personal categories personal security you know if if you're feeling sick the you push the button and suddenly the hospitals put on call are you working -- -- the government in any -- -- Medicare Medicaid and any of these projects.
You know today we're not we offer -- -- EDT companion services so we've got the -- from the bracelets.
So there's an emergency you hit that panic button.
It goes -- monitoring senator and then we passed that information -- the caregivers but when I look at our new EDT pulse offering.
There's an opportunity to really make those solutions so much more robust.
And in the end we're gonna have to partner with the insurance companies including Medicare Medicaid.
-- from -- were reimbursement perspective because I think that's one of the opportunities you're really open up markets.
This sounds awfully expensive hot how much does -- cost.
Actually it's very affordable -- ADT's strategy is to make these solutions affordable to the mass market so.
When you look at our highest and you know pulse offering.
With the home automation energy management and everything you know you're talking in the area of sixty dollars a month from you know from a monthly recurring perspective.
And very affordable from an upfront installation perspective because again we do we subsidize that installation.
And we believe with the value proposition will keep customers for a very long time.
Lot of room for growth the rain -- -- best of luck to you thanks for coming on fox raises appreciated.
Thank you very much our pleasure.
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