Femtocells Will Boost Mobile Triple-Play Services

The worldwide wireless market in the developed world is approaching saturation, with carriers offering little compelling differentiation except for price points and, to a limited degree, signal quality, reports In-Stat. Mobile triple-play services (voice, video, and Internet) revenue opportunities are the most likely solution to this situation, but only when cell operators first solve signal coverage and capacity issues in the indoor home environment, the high-tech market research firm says.

"Femtocells (small cellular base stations designed for use in residential and small business environments that provide enhanced coverage at the edge of the wireless network) are a practical, near-term cure for these problems, with no practical limitations," says Allen Nogee, In-Stat analyst. "Femtocell technology is unlikely to be superseded by another technology in the foreseeable future."

Recent research by In-Stat found the following:

• Worldwide femtocell subscriptions (installed devices) are expected to grow to 40.6 million by 2011.
• Femtocell end-users will reach 101.5 million over the next five years.
• Femtocell device/service pricing will be a major short-term challenge, likely requiring operator subsidization.

Posted to the site on 13th August 2007