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February 04, 2009

Despite Their Benefits, Femtocells Not Widely Accepted by Consumers, New Research Reveals

By Michelle Robart, TMCnet Editor

A new report from high-tech market research firm In-Stat reveals that wireless users can increase their coverage and even place calls for free within their homes thanks to the use of femtocells.



 
However, In-Stat (News - Alert) also points out that this might be enough evidence to convince consumers to start using femtocells. But the increasing number of Wi-Fi cellular phones means the cost of the femtocell alternative, calling on a SIP phone or via UMA, is becoming more affordable.
 
Originally known as an Access Point (News - Alert) Base Station, a femtocell is a small cellular base station, typically designed for use in residential or small business environments. A femtocell connects to the service provider’s network via broadband (such as DSL or cable). In a residential setting, a femtocell can typically support 2 to 5 mobile phones.
 
“Femtocells (News - Alert) may have a bright future, but convincing the public they are needed may take some work, especially when customers realize that they are paying for the broadband to power the femtocell,” explains Allen Nogee, In-Stat analyst.
 
The report, “Dynamics of the Femtocell Market and Business Proposition,” leads In-Stat to believe that worldwide shipments of cellular femtocells will grow to more than 30 million in 2012, with the U.S. representing about 40 percent of total femtocell shipments.
 
According to In-Stat’s end-user survey, 44 percent of likely femtocell subscribers will eliminate their landline phone service.
 
In-Stat’s research covers the worldwide market for femtocells and includes survey results on the benefits of femtocells conducted in the U.S. in June 2008. The report also make a worldwide femto cell forecast through 2012, and examines the history of femtocells and why they are important today. In addition, the research report provides an overview of where we are now and an analysis of the challenges the femtocell business will face in the future.
 
Technology vendors, service providers, technology professionals and market specialists, worldwide, depend on In-Stat’s extensive insight and in-depth research to support critical business, product and technology decisions.
 
In-Stat’s research reports are based on a deep technology understanding and comprehensive research, which analyzes each segment of the value chain for each market. The company looks at regular and ongoing end-user demand and primary research surveys support much of the analysis. This enables In-Stat to deliver accurate market guidance on future market opportunities via research products, custom consulting, and advisory services.
 
 

Michelle Robart is a contributing editor for TMCnet. To read more of Michelle's articles, please visit her columnist page.

Edited by Michelle Robart


 







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