Femtocells Market Assessment | Femtocell Market Forecasts

Femtocell Market Shares Strategies, and Forecasts,the broadband connection, back onto the cellular
2008 to 2014network. This beats having to set up lots more base
Femtocell systems provide modular value addedstations.
services delivery of wireless communications and SIPUbiquisys, the Google-backed company is providing
based push technology presence implementingthe femtocells for O2, along with 12 other trials
flexibility for people. The femtocells are designed foraround the world. It provide a technology that listens
achieving automation of communications connectivityin to the existing GSM and 3G network signals to
around the home and office. Adoption of advancedestablish if the licensee is allowed to transmit here.
systems is anticipated to be rapid.This provides the advantage of allowing network
Femtocells, are they a secret gathering of femaleoperators to lock the femtocell to one physical
revolutionaries or a miniature mobile phone baselocation or more, for a small fee.
station? Probably the latter, but it is intriguing to thinkFemtocells provide cheap calls, but with the cost of
about the former. Lets see, oh well, femtocellcalling so low there has been a clear shift to data,
technology is an industry-changing innovation.with O2 citing the iPhone as a clear driver: Apple
Dual-mode WiFi/cellular phones are not nearly as costiPhone is already driving unheard-of levels of mobile
effective as femtocells. Femtocells are emerging asinternet usage, and the introduction of flat rate data
the main technologies that will link the indoor andtariffs is expected to increase this further.
outdoor networks. Femtocells are particularlyIronically, the iPhone does not work with the
attractive to mobile carriers.femtocells O2 is deploying as they are 3G-only
Femtocells are emerging as a technology that letsdevices O2 is looking ahead to the next generation
wireless phone use in homes and offices become ahandset from Apple. O2 uses femtocells to drive
viable alternative to landline telephones. The ability touptake of their broadband offering. Network
leverage the Internet makes femtocells an economicoperators can deploy the technology on cable or
force in the marketplace; it brings the industryADSL broadband connections. O2's DVB-H trials show
changes in the way voice is delivered.that half mobile-TV viewing is done in the home, so a
Femtocells support SIP based broadband applications.large-scale femtocell deployment provides them with
Femtocells will most likely work in athe opportunity to become a major provider of video
telecommunications environment that has multipleto the home.
co-existing technologies that are deployed byGoogle has said it plans to bid in a planned auction of
different carriers to address their specific customerwireless airwaves. It could use femtocell technology
bases, business models, and eco-systems.to quickly roll out wireless services in the U.S. By
IP Multimedia subsystems promise to play a significantdeploying a femtocell-like system, in a matter of a
role in the core network evolution. The consumeryear they might be able to reach more than 50% of
always prefers achieving control over the network asthe U.S. population. Google can deploy femtocells at
much a s possible. The core backbone infrastructuremalls, on city streets (by mounting femtocells on
is provided by the services providers, but the edgestreet lamps), and along major highways. Then it
of the network is evolving functionality. Femtocellsmight strike roaming agreements with other carriers
provide a way for consumers to go to the localto offer users wireless service outside the home
store and purchase a device that optimizes thewhile it builds out its wireless towers.
existing 3G handset ability to have better access toIf Google set up the wireless telephone business,
NGN IP services.they could offer communications free, basing the
This aspect of optimizing packet services from therevenue model on advertising. If calls go out ot he
home gives the consumer better control. No one willInternet throught the femtocell, they could be
defer to the service provider if they can go out andhandled in the same way that Google Talk works
purchase their own device for somewhere betweennot, and there would be no need for a wireless
$300 and $100 as the volumes increase and theservices provider.
prices decline. Service providers may think that theyServices providers cannot service devices in the
can control the access to the devices, but inhome the cost of truck tolls is too high. Just as
competitive markets, the customer will alwaysVerizon started out offering routers to the home
choose control over his own environment vs. givingowner for fiber services, those devices were not
the services provider control over the network.supported and customers are told to go to the local
Femtocells improve the quality of service of 3Gstore and purchase a router.
networks indoors. Even 2G and 2.5G coverage can beFemtocell trials are achieving success. Rolling out a
patchy. Mobile users can enjoy voice and datafemtocell-based service is dependent on building an
services from home. One barrier to rollout is the needend-user initiative that would create demand for a
to reduce the cost per unit of the hardware. Initially itfemtocell. Improved indoor coverage can be delivered
may be that operators provide femtocells toby repeaters or additional macro-cell base stations.
customers as part of a service plan.Improved capacity would follow. Femtocells create
Carriers have realized that it would be three yearsthe need for subscribers to purchase home based
before the cost of the femtocell will reach $100.devices. The value in FMC services comes when
They are now considering renting out femtocells tostrong 3G users need more capacity to transmit to
users for a long contract period, rather than allowingthe internet from inside the home or office.
them to buy it outright.Markets initially at $434 million in 2009 reach $9 billion
Cisco has interest in the emerging technology with anby 2014. The rapid growth occurs because to the
investment in ip.access, a Cambridge-based femtocelllarge size of the wireless handset markets, the billions
manufacturer. This is opening up the possibility ofof subscribes that must be supported. The femtocells
femtocells being integrated into other consumerprovide core infrastructure at a lower price than
entertainment hardware, such as set-top boxes,other alternatives. The local home base station gives
which Cisco already sells. Because femtocells providethe consumer a measure of control over the
a way for mobile operators to handle backhaul, callsnetwork that is useful.
would go from the handset, to the femtocell, down