Currently, broadband is the direction in which most alarm companies are moving, but before broadband burglar alarm security systems were handled similar to this:
An alarm system requires a means to send signals to a central location. Years ago there were direct lines and partial loops provided by the phone companies. This method needed countless small stations throughout the country which became very expensive and required hard wiring from this point to that point.
Then the digital signals took over. Digital signals were easy to set up, cheap, but also much less secure. Digital signals started in the mid to late 1970s and were then branded as affordable, thus companies flocked to sell alarms to the middle class American. What none of them told you was all a burglar had to do was cut the phone line and this turned off the digital signal.
Digital Burglar Alarm Security Systems then started to become more available and affordable. This brought about companies who opened offices selling $99 dollar systems. While at the same time the company’s existing offices were selling the same alarm systems for $5,000 on up. Sounds fishy, doesn’t it? It turns out that if a customer wanted one of the companies security signs to display at their RV or their house, the customer had to pay $99. If a customer wanted a system that would actually work and protect them, then the customer had to pay the $5000 and up. It turned out that this was because alarm companies are valued on their monthly recurring revenue not what they sell a system for.
As the years progressed, the industry moved to lessen this security risk by means of protecting the phone line better and adding things like 24 hour supervised testing. However, the big players in the burglar alarm security system business didn’t see this route as profitable enough and some offered even lesser protection to increase their bottom line. This had a negative effect on what some of the mid-sized to small alarm companies could offer because they had to lessen the protection that their customers really needed to compete with the larger alarm companies.
At the same time cities and counties found out that burglar alarm security systems can be extremely expensive, because police and firemen were chasing countless false alarms. False alarms that were called in by alarm security system central stations who couldn’t differentiate between the real and false alarms and thus wasted municipal resources. Many cities now charge for false alarms, and you need a permit to have an alarm system.
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