Femtocell access great potential, tough hurdles

Infonetics Research has recently published a report on femtocell technology – Femtocell Access Points Market Size and Forecasts. Deployed within buildings, Femtocell access points boost GSM/GPRS, CDMA or 3G macrocellular signal coverage. Femtocell technology was launched in North America by Sprint in the first quarter of 2007, based on Samsung UbiCell femtocell.

The report found that femtocell access points serve the need of mobile operators in two key ways, firstly it’s a cheaper method to backhaul network traffic, and secondly it offers reliable coverage and reliable indoor Internet speeds.126

The report also found:

  • Developing countries are a possible market for 2G femtocells as its offers cheaper mobile voice calls from dwellings.
  • Mobile network operators could make significant investment reductions in conventional 3G networks and other networks such as DVB-H.
  • Femtocell technology could also lower the rates of customer churn.
  • Before femtocell technology can be successful there are some technical challenges to be faced, it lacks standarisation, and is an unproven business model.

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