By Natasha Lomas, 23 April 2008 12:52
NEWS
The stars are aligning to create a market that's ripe for femtocell technology, according to a report from analyst house Infonetics Research - but don't start counting your mobile-access-point chickens just yet.
Infonetics says market conditions are looking up for the backhaul tech which piggybacks on a broadband connection to boost mobile coverage indoors. This is due to three main factors: global growth in the number of mobile subscribers - predicted to hit 4.4 billion in three years' time; the proliferation of broadband - itself driven by the popularity of apps such as social networking, online gaming and multimedia content; and mobile operators' desire to hike ARPU (average revenue per user) by enticing customers to pay for new data services as voice revenues diminish.
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However, the path to femtocell riches is not without complications and caveats, warned Richard Webb, directing analyst for WiMax, wi-fi and mobile at Infonetics Research.
Webb said while the access point tech has the potential to offer mobile operators a less expensive way to backhaul network traffic and provide more consistent coverage and internet speeds indoors, there are still "tough hurdles" to be overcome if it is to gain mass-market adoption.
He said in a statement: "Femtocells are an unproven business model and lack standardisation, which could inhibit adoption in the short term. There are also technical challenges to overcome, including interference, scalability and management issues, and the cost to end-users, which likely won't drop below $100 per unit until 2009 or 2010."
The rise of HSDPA (aka 3.5G) is also a driver for femtocells as the souped-up speeds it offers are fuelling mobile broadband.
But femtocells could also have applications at the lower end of the mobile market too. The report said there is an opportunity for 2G femtocells in developing countries to deliver cheaper voice calls in the home, although this is not likely to be a booming market compared to 3G, it added.
Comments
There are 6 comments. Join the discussion
1. Julian Nicholls
Here's how I understand it: I install the femtocell and use my broadband connection to improve my provider's 3G/HSDPA coverage, and they want ME to pay THEM for it.
Am I missing something?
2. Joe
I think you got it mate.
3. Haydn Rees
There you go. I think you were very fast on the uptake there. Who says consumers are stupid?
4. anonymous
Yes, you're missing that they'll give you a discount on your phone bill.
5. John Brooks
'Spoiled for choice' is a phrase that comes to mind! I waslooking the other day at an 'internet-enabled' home electronics gadget that connected via WiFi, so the only 'extra' box was a WiFi router which many users already have!
The key issues are cost and security. In this case, the bill-of-materials cost of the whole gadget, including the WiFi inteface, was about 25 Euros!!
Security is another problem: WiFi is already beset by passwords,etc. to secure the router from intrusion. Can't see any reason why the same security problems would NOT arise with a femtocell.....
6. anonymous
I assume you don't really know what is the difference between security in WiFi and 3G by saying "Can't see any reason why the same security problems would NOT arise with a femtocell.....".
It's much easier to hack into WiFi network than to 3G. Are you using any passwords using your cell phone, except a PIN code? No, because the core network is responsible for providing access. Does anyone hack into other operator's nework? No, because it's useless. It's extremely hard to hack into operator's databases, which are used in user authorizing. Please add a new subscriber to operator's database and call for free. I wish you luck.
In WiFi hacking is about getting access to router, that's how it works.
Regards