Ahead of the CTIA Wireless show in New Orleans, AT&T announced it would make a strong entrance into the home security and automation business. The company said it has formed "Digital Life" to deliver these services, which will work with any Internet connection, and will be available nationwide. AT&T will start a trial this summer in Dallas and Atlanta.

According to Sanford Bernstein analyst Steven Winoker, roughly 23 percent of U.S. homes have security systems, and even fewer have automation systems for controlling lights, heating and cooling, appliances, or other things. The home security and automation business is a great opportunity for new resources of growth, and the potential is huge. ADT is the biggest player in the business, but it holds only 25 percent of the market. The rest is made up by many smaller companies, said Winoker.

On the other hand, even though it is a very profitable business, it is a small market so even if it is successful it is not big enough to drive significant earnings for a company the size of AT&T, added the analyst.

AT&T relies on the technology of Xanboo, a company it acquired in late 2010. Its central control panel can wirelessly connect with cameras, thermostats, lights, appliance controls and all sorts of sensors. Homeowners can control their home from their mobile devices through this panel.

AT&T's Offering

AT&T plans to offer windows and door sensors, connected cameras, smoke, carbon monoxide, motion and glass-break sensors, thermostats, moisture detectors, door locks, as well as the ability to remotely turn off appliances. All of the devices would be hooked into the home's broadband network, and owners can give commands from a mobile device using a cellular network.

AT&T will also handle the professional installation of all sensors and devices, and offer a wireless and integrated platform for security and automation services. Customers will also be provided with an application allowing them to customize their service and remotely manage their home even when abroad. Through its own monitoring services, AT&T also plans to provide security services.

The service will be available nationwide as part of AT&T's mobility group. Connected devices in a home can be hooked up to any broadband service, and customers can control them remotely using any device with an Internet connection, either through Wi-Fi or AT&T's service.

According to Glen Lurie, AT&T's president of emerging devices, it is recommended that the control panel is connected to wired broadband, and the service doesn't even have to be through AT&T. The panel can also connect to AT&T's wireless data network as a backup.

AT&T will start to gradually deploy the service, starting with trials this summer in Dallas and Atlanta. The service will be available via AT&T stores or the company's Web site once the rollout is expanded nationwide. The company did not mention how much its services would cost.

(reported by Alexandra Burlacu, edited by Dave Clark)