Femtocells are low-power radio systems that plug into a residential broadband connection and enable mobile subscribers to use their existing mobile cellular handsets to access both data and voice services. This is one of the key differentiators for femtocells, because with existing fixed-mobile convergence (FMC) services, users require a dual-mode cellular/wireless fidelity (Wi-Fi) handset to avail services at lower costs inside buildings.
New analysis from Frost & Sullivan (wireless.frost.com), European Femtocells Market A Strategic Analysis, estimates that there will be 21.392 million femtocell subscribers with 10.696 million femtocells deployed across Western Europe in 2010, and this will reach 39.403 million femtocell subscribers with 15.761 million femtocells deployments by 2011.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the investment analysis and growth opportunities in the European Femtocells Market, then send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com, with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.
"Unlike 2G, 3G is deployed further down the frequency band and hence the wavelength of the signal reduces, providing smaller coverage; carriers, therefore, need to deploy more base stations to meet coverage and capacity requirements, resulting in higher capital and operational expenditure (CAPEX and OPEX)," notes Frost & Sullivan Programme Manager Luke Thomas. "Accordingly, carriers are evaluating femtocells as a solution to reduce the cost factor and enhance indoor quality of service (QoS) for 3G technology."
The appeal of femtocells is being reinforced by the fact that more than 90 per cent of mobile data services are accessed inside buildings, and the cost of 3G handsets are on the decline. Stronger 3G signals inside buildings imply faster data rates. Furthermore, as femtocells are connected to the user's broadband network, the user, instead of the carrier, would have to pay for backhaul traffic to the latter's core network. This results in enhanced cost benefits for mobile carriers.
However, the underlying factor for the success of femtocells lies in its commercial cost. Hence, there is immense pressure on vendors to further reduce the bill of materials (BOM) for femtocells, as carriers are not in a position to subsidise if the overall costs do not effectively reduce to 100 Euro.
"Carriers have realised that it would be long before the cost of the femtocell will reach 100 Euro," says Thomas. "They are now considering renting out femtocells to users for a long contract period, rather than allowing them to buy it outright."
European Femtocells Market A Strategic Analysis is part of the Mobile & Wireless Growth Partnership Service Programme, which also includes research in the following markets: Mobile WiMAX, xMax and 3G LTE Analysis of Mobile Broadband Technologies, Mobile Virtual Network Operators: Emerging Participants in the European Mobile Market, and European Wireless E-Mail Markets, European Mobile Outlook. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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