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In-Stat: Mobile triple-play success hinges on femtocells

Posted: 17 Aug 2007 ?? ?Print Version ?Bookmark and Share

Keywords:femtocells? triple-play service? mobile operators?

In-Stat sees the use of femtocells as crucial for the growth of the mobile triple-play market. According analysts, subscriber figures will explode over the next couple of years.

While the wireless market in the industrialized world is approaching saturation and carriers do not have the possibility to offer differentiating features, triple-play services would be a possibility to regain the initiative. However, this type of service presently faces signal coverage and capacity issues, In-Stat finds in a study.

Nevertheless, if mobile operators succeed in solving this problem, they can expect rising subscriber numbers and, thus, higher profits. An adequate technology is presently at the starting blocks. "Femtocells are a practical, near-term cure for these problems, with no practical limitation", explained In-Stat analyst Allen Nogee. And what is even better: "Femtocell is unlikely to be superseded by another technology in the foreseeable future."

According to the market research firm, the installed femtocell base is expected to grow to 40.6 million from virtually zero within the next four years. The number of users will reach more than 100 million within five years, the analysts believe.

The pricing scheme for femtocell devices as well as for services will be a major challenge for the short term and likely require operator subsidization, In-Stat notes.

- Christoph Hammerschmidt
EE Times Europe

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