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