Femtocells are not new and have been discussed by the industry for some years. While market development has been slow, recent standards developments have moved the potential forward a little. This report provides an update of the femtocell market and the current opportunity.
Femtocells are cellular access points, much like small base stations, that provide mobile coverage within a building by connecting to a mobile operator’s network via a fixed broadband connection. Femtocells can be installed in homes or small offices. When a femtocell is in operation, subscribers’ cellular phones transition between the femtocells and the carrier’s cellular network depending on which one provides more optimal RF signal conditions at the time. Femtocells work much like Wi-Fi hotspots, except for the fact that they power transmissions over a wireless carrier’s licensed spectrum. Current femtocells are carrier and network-specific.
Although femtocells, originally referred to as Access Point Base Stations, have been in existence since 2005, it is only in the last year that these solutions have become widely known and accepted. For end users, femtocells can mean better cellular coverage in their homes or offices, as well as reduced cellular service bills. For mobile operators, femtocells can be a competitive advantage when attracting new customers or expanding services to existing subscribers.
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