The Business Case for Picocells and Femtocells in the Enterprise Market: Industry

The Business Case for Picocells and Femtocells in the Enterprise Market

Published Date: November 2007

Published By: Analysys Mason

Order Code: R51-250

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Description

Table of Contents

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Summary
1 Deploying picocells and femtocells in the enterprise market will be challenging
2 Indoor base stations could help MNOs to attract enterprises: 2.1 MNOs must not neglect the enterprise market; 2.2 The provision of indoor services is an area of weakness for MNOs; 2.3 Indoor base stations could enable MNOs to counter the threat of alternative solutions; 2.4 MNOs should strive to meet the challenging indoor service requirements of the business market; 2.5 MNOs should apply commerical logic to the deployment of indoor base stations
3 Early movers are seizing opportunities with 2G picocells: 3.1 2G picocells are already commercially available and deployed; 3.2 Low-power GSM licences have been awarded in the UK and are suitable for picocell services; 3.3 Spring Mobil targets Swedish enterprises with picocell services
4 ARPU and transmission costs underpin picocell service viability: 4.1 Current standalone picocell services require 30 users or more to achieve financial viability; 4.2 The most sensitive aspects of the business case are ARPU and transmission; 4.2 There is substantial value in targeting smaller businesses
5 3G femtocells have potential in very small businesses: 5.1 Opportunities for 3G femtocells exist beyond the consumer market; 5.2 3G femtocells could support non-voice services, but with possible transmission and capacity bottlenecks; 5.3 The potential for 3G femtocells to support greater user densities needs thorough investigation
6 Enterprise solutions require a number of factors to succeed: 6.1 Indoor base station equipment is just one component of an enterprise solution; 6.2 MNOs must target the weaknesses of WLAN services; Actions
List of Figures and Tables: Figure 0.1 Major revenue and cost elements of an MNO's business case for indoor base station deployment in enterprises; Figure 2.1 The scope of enterprise mobility; Figure 2.2 Major revenue and cost elements of an MNO's business case for indoor base station deployment in enterprises; Figure 4.1 Breakdown of cost to MNOs per user per month for an enterprise picocell solution, for different numbers of users; Figure 4.2 ARPU generated by an enterprise picocell service in three scenarios; Figure 4.3 Number of service users required by a picocell operator to achieve a 10% revenue margin, given three different transmission solutions; Figure 5.1 Incremental ARPU per month in two enterprise femtocell service scenarios; Figure 5.2 Cost per user per month in two enterprise femtocell service scenarios; Figure 6.1 Estimated up-front investment cost per user for a WLAN VoIP solution; Table 2.1 The scope of enterprise mobility; Table 3.1 Bids for low-power GSM licences in the UK; Table 5.1 Typical average downlink throughput of GSM and W-CDMA family of cellular technologies in different environments; Table 5.2 Two enterprise femtocell scenarios that achieve satisfactory financial return