The Case for Femtocells

This white paper, which explores the operator business case and consumer propositions for deploying femtocell technology in the home, examines the benefits from a user experience perspective and offers detailed cost analyses of the potential savings for mobile network operators.

Femtocells are tiny, low power 3G radio systems that plug into a residential broadband connection to provide a mobile signal directly in the home. A home femtocell delivers its strong signal and fast data rates at very low cost, since the traffic is backhauled to the mobile operator's core network over the existing home broadband link. These cost savings can be passed on to customers in the form of highly attractive "femtozone" tariffs, which extend operators' existing "homezone" tariff propositions by delivering improved coverage indoors, reduced service delivery costs, and seamless handover to the macro network. These targeted femtozone tariffs will make the mobile phone competitive not only with fixed line services, but also with television and PCs for home entertainment and information services ultimately enabling new business models based on revenue share with web and media partners. A recent McKinsey report highlighted that 35 per cent of mobile TV is watched in the home.

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