Finding a Femto Future

Femtocells are gaining impressive industry momentum, given that the technology is still immature and the business case is unproven—and consumers have no idea what a femtocell is or can do for them. Femtocells enable a new network architecture and design philosophy that leverages a customer’s broadband connection to improve coverage and provide new economics and reliability in delivering voice and broadband services. Operators throughout North America, Europe and Asia are issuing RFPs and conducting lab trials with plans to extend to the field during 2008. Today, only Sprint has deployed limited commercial trials with heavily subsidized equipment. But at least two major GSM carriers, Vodafone and Softbank, are planning commercial trials by early 2009, and Verizon Wireless is talking about a significant trial deployment this year to extend its coverage to its CDMA network.

I. Market Dilemma

II. Value Proposition for the End User

III. Value Proposition for the Operator

Segmenting the Operator Dilemma by Geography

IV. Market Enablers

Lower Equipment Costs

Advanced Services

V. Addressing the Challenges

Technical Issues: FCAPS

Business Challenges

VI. Market Forecast

VII. Conclusions and Recommendations

Methodology

Recommendations for Service Providers

Recommendations for Vendors

VIII. Further Reading