Shipments of femtocell technology are only just beginning, but recent reports suggest 2010 will be the year in which the technology starts to hit the mass-market. Analyst firm, ABI Research, has predicted that 100,000 femtocells will be sold in 2008. However, 2010 will be the year of real ramp up and ABI predicts shipments will hit double-digit millions in terms of volume.Femtocells, originally called Access Point Base Stations or home base stations, are very small, low-power, cellular base stations designed for in-building use, initially for residential or small business environments. A femtocell is smaller than a micro- or picocell. They connect to a service provider’s network via broadband such as DSL or cable and typically support two to five mobile phones in a given location. Femtocells differ from Wi-Fi access points because, in essence, they act as smaller versions of signal repeaters, however they do function in a similar way by broadcasting wireless signal from a broadband connection.
Femtocells are attractive because they enable service providers to extend service coverage within a user’s premises without the need for costly cellular towers. Benefits to end users include; reduced call charges, improved indoor network coverage, reduced device battery drain, one consolidated bill, the ability to support multiple users and lines, and the back-up of landline support. The technology also provides benefits such as; improved coverage, reduced backhaul traffic because mobile traffic is routed through an IP network, capacity enhancement and reduced churn. In addition, femtocells can be used to enable triple play and stimulate 3G usage.
For Stuart Carlaw, vice president and research director with ABI, the market will reach a turning point next year and it’s a case of when, not if, for femtocells.
“The turning point for this market will be late 2009,”
he said. “There is little doubt that all the technical hurdles regarding femtocell deployments can be overcome. The really critical issue will be whether initial carrier deployments are supported by robust business models and service plans that extend beyond pure fixed-mobile substitution goals. By 2010, femtocell silicon solutions will have been optimised to the degree that US$100 price points for femtocell access points will be within reach, and OEM’s order books will have the volume to sustain critical wholesale price reductions.”