AT &T and Numerex may benefit from switch to wireless alarm systems

ABI Research says that security alarms are switching over from land line phones to wireless carriers, and AT&T Inc. (NYSE: T), along with a few companies that specialize in Machine-to-Machine (M2M) communications, is poised to benefit. ABI Research named Aeris, Jasper Wireless, Numerex and KORE Telematics as being key players in this field. The only one of those that's traded is Numerex Corp. (NASDAQ: NMRX).

ABI Research says that last year there were 2.5 million wireless security alarm connections, but by 2013 they expect to see three times that many. Alarm companies are switching to digital systems because of changing regulations, cost and -- the idea that's easiest to grasp -- the fact that the line can't be cut. ABI Research's "Home Automation and Security" is an article that analyzes the security market.

For AT&T it's a nice way to boost revenue in case that whole forcing people into iPhone contracts doesn't work out. But AT&T is so huge, will the security market make a difference? Numerex has a market cap of only $100 million. It's still and up and coming area.