SmartphoneKey

About SmartphoneKey

When we started in cable TV, we had no paid channels to offer. We built networks in buildings first and established our presence. When we later added paid channels, we generated substantial revenue, and competitors struggled to enter the buildings where we were already established. We then began bringing internet access into buildings when only about 1% of residents wanted it. When demand became widespread, we were already there and connected hundreds of thousands of customers. We see the same pattern emerging with AI services in buildings. Many of the services we envision are only beginning to appear, and demand is still limited. But we believe there will be many more over the coming years, serving a much broader market. The providers that establish themselves in buildings now will be in the strongest position to capture those customers. Our platform allows service companies to enter buildings today with initial services that can pay back their investment. At the same time, they establish the infrastructure and customer relationships needed for future AI services. When those services become available and demand grows, providers can use the same infrastructure to generate additional revenue and potentially much higher profits. This gives them a business case to invest their own money now, just as cable TV and internet operators did when those markets were emerging. We believe the pace of AI development puts this opportunity within the next one to three years, rather than ten. Providers that establish the infrastructure layer in buildings early can gain what investors often call an “unfair competitive advantage”: they will already have the infrastructure and customer relationships when competitors arrive. There is also an immediate reason to enter buildings: upgrading existing access-control systems to support Apple and Google Wallet keys. We see a parallel with the upgrade of payment terminals to support tap-to-pay. This creates an entry point today for a much broader business in AI services tomorrow.