Putting a priceon smart homeprotection
How Internet Service Providers can protect
customers, increase revenue and enhancetheir brand with digital security

Key takeaways
Internet security and privacy are now considered as important as high speed
when choosing a home gateway/Wi-Fi router• 33% of consumers have experienced some form of cybercrime in the last year
• 81% of consumers either expect their Internet Service Provider (ISP) to keepthem safe as a core part of their internet offering or expect some level ofprotection from online threats but are willing to pay for increased threatprotection• 20% of an average service provider’s internet customer base is at risk if anoperator is noncompetitive on providing security
Today’s consumer knows the risks of leaving their smart devices unprotected,
and this manifests in both a desire for protection from the providers they trust
and a willingness to pay for it• 42% of consumers believe smart home device manufacturers are not doing
enough to ensure their online security and privacy• 42% of consumers worry that one of their internet connected smart homedevices could become infected by a virus/malware or be hacked• 62% would be willing to pay for the protection of all their internet connected
devices at home
Protecting smart devices requires a smart approach

Putting a price on smart home protection

2Methodology
The F-Secure Global
Connected Home Survey
was undertaken in June
2023. The total number of
respondents was 4400. Datain charts selected from 11
countries: Brazil, Germany,
Finland, France, Italy, Japan,
Netherlands, Norway, Sweden,
United Kingdom, UnitedStates. (N = 400/country, age
25-74 years). All data refers tothis study unless referenced
otherwise.
Putting a price on smart home protection

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Smart home devices
are here to stay, andconsumers need
protection

In a world where convenience is the new currency it’s nowonder that internet connected smart home devices are sopopular. Deloitte has found that there are now 22 connected
IoT (Internet of Things) devices in the average home within theUnited States, and this is expected to rise by 55% by 2025.
But today, it’s not just computers and phones that are connected
to home Wi-Fi networks. We have found that 77% of consumers have a TV streaming device in their homes, while 41% ofconsumers have some kind of home monitoring device, and 27%
of consumers use smart wearables. Plus, we found that 18% ofconsumers plan to add or replace a device in the next 12 months,
while 22% plan to add a new one in a new category. If this tells us
one thing, it is that smart devices are here to stay.

Putting a price on smart home protection% Owning one or moreconnected devices

77%

41%

Streaming device(TV or device)

Home monitoring Device( Security, safety, automationor door lock/bell)Plan to purchase devices
in next 12 months

18%

22%

Adding/replacing
devices in category

Adding new categoryof devices

22
the number ofconnected IoT (internetof things) devices in theaverage home within
the United Statesaccording to Deloitte

55%
the predicted increasein this figure by 2025,
according to Statista

4Consumers areworried about theirdigital security athome

Putting a price on smart home protection

While consumers are fast filling their homes with smart devices, they are no less worried
about cyber crime. F-Secure has found that more than half of consumers feel likely to be avictim of cyber crime or identity theft in the future, while 33% of respondents said that they
had been a victim in the last 12 months.
What's more, 42% are worried that one of their internet connected smart home devices
could get infected by a virus/malware or be hacked. Perhaps this is driven by a lack of faith indevice manufacturers - we found that a further 42% believe that smart home device manufacturers are not doing enough to ensure their online security and privacy.

33%

42%42%

said they had beena victim of cybercrime in the last 12months

worry that one of theirinternet connected smart
home devices could
get infected by a virus/
malware or be hacked

believe smart homedevice manufacturers
are not doing enoughto ensure their online
security and privacy

5% Saying it is important toprotect selected devices

0%

79%

78%

72%

63%

62%

53%

52%

48%

Smart Home/
Kitchen Appliances

20%

Gaming consoles

20%

Smart TVs/
Streaming Devices

40%

Home Monitoring & Automation
Devices40%

SmartSpeaker/ Voice
Assistants

60%

Home security
devices60%

Phones/tablets

80%

Computers/
laptops80%

Putting a price on smart home protection

0%Internet security
and privacy areconsidered asimportant as speed
There is no doubt that consumers
today are recognizing the importanceof protecting their devices. Security
and privacy are now considered thesecond and third most importantfactors when choosing a homegateway/Wi-Fi router.

6

How important are the following factors whenchoosing your home gateway / Wi-Fi router?
54

2913

Good Wi-Fi coverage

22

Online security

23

17

Online privacy

2318

31

46

High speed

23183146

Wi-Fi automatically adjusts to best
performance24

Low price25

The latest technology
Integration to your smart home management
service, entertainment service etc.

473730

25

13

10
1218

15
Slightly

Moderately

25
32

Important

2325

30

27

29

30

29

Not important

Putting a price on smart home protection

40

32

21

Parental controls
Router design

48

31

20
20

1716

Very important

7

How much do you rely on
your internet/Wi-Fi service
provider to actively protect
you from online threats?
13%
7%

81%
of survey respondents said that theyeither expect their ISP to keep them safe
as a core part of their internet offering
or expect some level of protection fromonline threats, but are willing to pay forincreased threat protection

55%

26%

I expect my internet service provider
to keep me safe as a core part of theirservice offering
I expect some protection from online
threats, but am willing to pay for additional security features and increased threatprotection to keep me safe

Putting a price on smart home protection

62%
I do not rely on my internet service
provider to keep me safe and am
willing to pay for protection of all myinternet connected devices
I do not worry about online threatsof survey respondents said that they would
be willing to pay for the protection of all
their internet connected devices at home8Cultivating
consumertrust pays off
Not offering internet security may not be a viable option for ISPs
for much longer. Of the 55% of consumers that expect their ISP
to keep them safe and do not explicitly say they are willing to
pay for supplemental protection, a worrying 36% say they areat least somewhat likely to leave for another provider offeringbetter protection at the same price/speed.
This means that around 20% of an
average ISP’s internet customer
base is at risk if an operator isnoncompetitive on providing
security. Alternatively, this presents
a huge opportunity for an operator
that provides security over
one thatdoesn’t.

"I would purchase mysecurity and privacy
services from my internet
service provider."2018

60% somewhat or strongly
agree with statement

64% somewhat or strongly
agree with statement

2021

2023

69% somewhat or strongly
agree with statement

Source(s): 2022 F-Secure Connected Home Whitepaper, F-Secure Global Connected Home Survey, 2023

Putting a price on smart home protection

936%of consumers say they are at least
somewhat likely to leave for anotherprovider offering better protection at thesame price/speed

Likelihood to switch providers
offering better security atsame price/speed*
Definitely would stay with current provider 9%Somewhat likely to stay with current provider 15%

May or may not switch 39%

20%
Somewhat likely to switch 27%

of an average service provider's internet
customer base is at risk if an operator isnoncompetitive on providing security

Definitely would switch 9%*of those that expect their internet service provider to keepthem safe as part of their internet service

Putting a price on smart home protection

10Protecting smart
devices requires asmart approachToday’s consumer knows the risks of leaving their smart devices
unprotected, and this manifests in both a desire for protection fromproviders they trust and a willingness to pay for it. But is protecting
these with legacy solutions the security equivalent of putting asquare peg in a round hole?

The connected home device category is highly fragmented. Thereare hundreds of thousands of device types on the market, andthis is only growing. This presents two unique issues. Not only isidentifying threats for thousands of devices and device models
extremely difficult, but there are also no specific endpoint online
security solutions provided. In fact, many manufacturers overlook device security for these smart devices altogether.
Endpoint protection does a great job of protecting phones andcomputers against threats, but most smart home devices do
not allow installation of endpoint security protection on the device
itself. As cyber security expert and author Mikko Hyppönen titled his
bestselling book, “if it’s smart, it’s vulnerable.”

Putting a price on smart home protection“Unfortunately, many of
the companies that got into
making smart home devices
didn’t prioritize security. Some
devices couldn’t be updated
at all. Other companies failed
to issue fixes in a timely
manner. Given how AI tools
can encourage even greater
intimacy and trust on smart
home devices, they will onlybecome more attractive tomotivated attackers.”
Tom Gaffney,Director, Business Development, F-Secure11

Does artificial
intelligence (AI)hold the key tosmart device
protection?
At F-Secure, we understandthat AI is the future, and weare heavily investing in AI
technology. This includes using AI
to better protect connected homedevices. For example, we arecurrently using machine learning
to identify and highlight ourF-Secure users’ abnormal data
traffic from smart home devices.

Putting a price on smart home protection

F-Secure provides holistic,
seamless and converged
protection for yourcustomers

At F-Secure, we recognizethat keeping consumers
safe requires flexible solutions that meet our partners’
business objectives. While we’re best
known for F-Secure Total, our comprehensive endpoint security solution,
we also provide router-based andnetwork-based security solutions thatenable Internet Service Providers tooffer layers of security protection withflexible business models to best meetcustomer needs.
Whether your goal is to offer broad,cross-platform protection, drive
gateway rentals and services throughonline protection of all connected
devices or drive incremental revenue
and lower churn by offering the very
best protection for devices, F-Secure
can provide the perfect tailored solution for you.

12

F-Secure’s three layer security solution for
maximum protection and ARPU
For best protection and Average Revenue Per User (ARPU) opportunity, F-Secure offers a three-layered security solution
with a flexible business model. These can be sold as independent solutions or packaged to best fit your needs and strategy.

F-Secure Total - endpoint security​

Best

F-Secure Total
Endpoint security​Offers unparalleled online security, privacy and identity protection for phones,
computers, and tablets, ensuring the broadest defense against a wide array ofthreats.

F-Secure Sense - connected home security

F-Secure Sense
Connected home security​

Completenessof protection

Provides full visibility into home network traffic and extends protection to all
devices in the home network. It also encourages the installation of endpoint
protection on personal devices.

F-Secure DNS Security
Network security​in service
provider mobile/fixed network
Customer scale/adoption

Putting a price on smart home protectionHigh

F-Secure DNS Security - network security
Delivers baseline protection to all devices within the communication service
provider's mobile and or fixed network, and caters to devices where users are
not activating endpoint security or connected home security.

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Keen to find out more
about how to driveincremental revenue
while protecting yourcustomers?
Fill out the contact fromand let us show you how.

Contact us now

Putting a price on smart home protection

14

About us
F-Secure makes every digital moment more secure, for everyone.
We deliver brilliantly simple, frictionless security experiences thatmake life easier for the tens of millions of people we protect and our180 partners.
For more than 30 years, we’ve led the cyber security industry,inspired by a pioneering spirit born out of a shared commitment to
do better by working together.

For more information visit F-Secure today.

Putting a price on smart home protection

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