Femtocells need services to monetize them

Jessica Scarpati
02 Sep 2010
00:00
 
The carrier is also working on femtocell-based services for enterprise customers by tying the device into their IP public branch exchanges (PBX), Riordan said. Another service would use the femtocell to signal to the handset that the user has come home or arrived at the office and swap application shortcuts on the screen for what's most appropriate.
 
"While we as a network provider [say] we know where you are, we do and we don't. That's a misnomer. I have no idea where you are, but my switch knows where you are, and that's a big difference," Riordan said. "But it's very simple with a femtocell to say, '[The user is] in the house' and build applications off of that."
 
Early femtocell market experiments a mixed bag
 
Marketing femtocells has been tricky for carriers, as customers don't want to buy another device to boost the wireless service they're already paying monthly rates to receive. A number of major carriers worldwide experimented with offering free or discounted femtocells to select customers.
 
Japanese carrier SoftBank is credited with starting the free femtocell market model earlier this year to improve visibility and demand for the product.
 
In the United States, AT&T recently attempted to pitch its femtocell giveaway as a reward for its "most valuable customers. "After getting lackluster adoption in its U.K., Spain and Qatar launches, European carrier Vodafone earlier this summer offered its 3G femtocell, Vodafone Access Gateway, free of charge or at a discount for residential postpaid subscribers in Greece.
 
Femtocell market to hit stride with new services
 
The femtocell market has been slow to grow and is likely to reach 1 million units shipped by the end of 2010, but 2012 is expected to be the year the market explodes, with about 30 million units shipped, according to Loren Shalinsky, senior analyst at Dell'Oro Group, who recently authored a five-year femtocell market forecast.
 

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