• Vodafone Spain looks to mimic Telefónica success with entrance into connected‑security market.
  • Strategic agreement with market leader Securitas Direct picks up pieces of latter’s former relationship with incumbent rival.
  • Deal announced after Telefónica and Prosegur’s JV highlights strong customer acquisition since launch earlier in 2020.

Vodafone looks to unlock Spanish home security market

Vodafone looks to unlock Spanish home security market

Source: Max Böhme / Unsplash

Vodafone Spain (VfS) reportedly signed a strategic marketing agreement with alarms provider Securitas Direct, in a deal to offer Securitas’s security solutions across the OpCo’s retail footprint.

The tie‑up, reported by Expansión, marks VfS’s entry into the Spanish household security market, following in the footsteps of rival Telefónica España’s similar play in late‑2019 (Telefónicawatch, #138, #140–#141).

Telefónica launched a 50:50 joint venture (JV) with Securitas rival Prosegur in November 2019, and has started to overcome a slow start after the outbreak of the COVID‑19 pandemic (Telefónicawatch, #148), with results for the quarter to 30 September 2020 showing the JV had tripled customer additions compared with Prosegur’s standalone performance a year earlier. Until 2018, Telefónica was partnered with Securitas on VeriSure, the latter’s consumer‑facing brand. The Movistar VeriSure Hogar portfolio was axed after Securitas withdrew from the arrangement (Telefónicawatch, #98 and #127).

Dipping a toe

VfS is not putting the same skin in the game as Telefónica with its entrance into the market. The OpCo’s agreement appears to limit its potential rewards to commission payments. However, as shown below, Securitas Direct’s bigger market share provides VfS with a decent foundation.

The move also fills out Vodafone’s V‑Home smart‑services package — which is tied with the Group’s recently rebranded and refreshed SmartTech connected-device business (Vodafonewatch, #191).

A familiar business

Movistar and Vodafone are not the only operators tapping home‑security:

  • MÁSMÓVIL regional operator Netllar holds a distribution agreement with security solutions provider INV in the Levantine region, which Expansión reports may be expanded to the rest of Spain.
  • Orange Spain has been candid about its ambitions to enter the home security business in earnest. To advance this, it will pull out of its distribution agreement with alarms provider ADT Tyco on 31 December 2020, with a view to purchasing a 50%‑stake in ADT’s Spanish business. The operator is reportedly weighing up the potential to establish a JV, similar to that of Movistar and Prosegur. Orange has previously been unsuccessful in attempts to purchase other alarms providers, however.
Spanish home security market, November 2020
Alarms providerTelco partnerSubscribers (approximate)
 SourcesExpansión, companies.

Securitas Direct










Netllar (MÁSMÓVIL)