The latest technology to grip the mobile world is the femtocell, a tiny low-powered 3G access point designed to be used indoors. Analysts believe that the femtocell will drive further fixed-to-mobile substitution while helping mobile operators reduce their operational expenditure by backhauling traffic over a consumer’s own broadband connection.
Femtocells have a maximum range of around 30 metres. They operate only within an operator’s licensed spectrum so can be used to complement macro networks, providing indoor coverage where it is poor or non-existent.
Typically the size of a WiFi access point, the femtocell simply plugs into an existing DSL modem although some vendors are already working on integrated gateways. The femtocell is a fully-functioning
3G base station so subscribers can use their existing 3G handsets, giving the technology a distinct advantage over dual mode GSM/WiFi or GSM/Bluetooth handsets such as BT Fusion.
IPTV services offer greater on-demand capabilities than satellite television, and comparable to cable.
However, both cable and satellite operators are combining with electronics manufacturers to push high-definition television (HDTV). To deliver HDTV over the local loop, each stream requires 10-15 mbps depending on definition (720p or 1020i) and compression (MPEG2 or MPEG4).
A cable- and satellite-killing service would require multiple on-demand streams, and this would far exceed the capabilities of ADSL2+. The dilemma is whether to hold off on HD until a nationwide fibre to the home (FTTH) network has been built or adopt a hybrid approach where copper and fibre coexist.
“Standard definition TV may provide a stop-gap for the near future, but HDTV will be the future standard, and ADSL2+ won’t cope. If ADSL2+ isn’t enough then operators must look to VDSL2 and fibre,” says Martin Scott, an analyst with Analysys. The research firm estimates that an upgrade to VDSL2 would cost 300–400 Euro per home passed, while FTTH would cost around 1000 Euro per home passed.