Femtocells – cell phone service areas that are presumably even smaller than picocells – are poised for dramatic growth according to a new analysis from ABI Research. In its snappily entitled ‘Femtocell Access Points: Fixed-Mobile Convergence for Residential, SMB, and Enterprise Markets’ ABI reckons that, driven by considerations such as the potential for greater network efficiency, reduced churn and better in-building wireless coverage, and the ability to shape subscriber data usage patterns and to build platforms upon which fixed-mobile convergence (FMC) services can be realised, there will be 102mn users of femtocell products on 32mn access points worldwide by 2011.

“Femtocells offer many benefits to operators,” argues ABI principal analyst Stuart Carlaw. “From a technological standpoint, their better in-building coverage for technologies such as WCDMA and HSDPA is an incredibly important aspect of service delivery. From a strategic and financial standpoint, the routeing of traffic through the IP network significantly enhances network quality and capacity, and reduces the OpEx that carriers expend on backhaul. On a conceptual basis, femtocells allow carriers to price cellular data services in the home aggressively, with the ultimate goal of shaping consumer behaviour.”

The most interesting characteristic of femtocells, adds Carlaw, is that they can form the basis of a viable option for realising converged fixed-mobile services. They give operators a cost-effective way to support fixed-mobile substitution, as well as a platform in the home upon which additional features such as Wi-Fi and IPTV can be layered. However, Carlaw adds a note of caution: “This is a very nascent market and as such there is a pressing need for some standardisation, or at least a common recognition of what a femtocell's minimum requirements should be.”

One operator that is already getting in touch with its femtocell side – and one that is perhaps not coincidentally in the vanguard of the FMC movement -  is Korea Telecom. Last month the Korean incumbent signed a partnership agreement software defined radio specialist picoChip to develop WiBro/WiMAX domestic and corporate access points. “We are pleased to be co-developing WiMAX access points with the leader in femtocell technology,” stated KT senior executive vice president Yoon Jong Lok. “KT is always looking out for growth markets and the introduction of WiMAX home base stations will improve coverage and accelerate market acceptance of the standard.”
John Williamson