Femtocells: Wireless Products that both Operators and Customers can Love

New Report provides insight and strategies for emerging fixed mobile convergence

Forward Concepts announces the publication of its newest in-depth study of the worldwide femtocell equipment markets and the key chips that go into them. The new study, “Femtocells: The Emerging Solution for Fixed Mobile Convergence,” provides strategies and insights into the evolving femtocell equipment and chip Markets.

Other Key study findings are:

  • Femtocells will predominantly address the post-paid cellular subscriber base. As a result, North America, Western Europe, Japan, and Korea will be their largest markets.
  • Femtocells will capture the dominant Fixed Mobile Convergence market share by 2010, as UMA is deemed to be a transitional technology and cellular carriers will ultimately transition to IMS-enabled femtocells.
  • The most significant technical challenge for femtocell operators will be RF interference that will require proper frequency planning by the operators.
  • Global femtocell equipment revenues are forecast to grow at a CAGR of 126 percent from 2008 to $4.9 billion in 2012. Western Europe will be the largest market, driving 32 percent of the revenue followed by North America with a 22 percent share.
  • Femtocell integrated home gateway shipments are projected to exceed 23 million units in 2012, passing stand-alone femtocells for over half of the market.
  • Semiconductor revenue from both stand-alone and integrated home gateway femtocells will grow at a CAGR of 138 percent from 2008 exceeding $1.5 billion in 2012.

According to the author, Satish Menon, "Cellular subscribers will benefit through cheaper and more reliable calls through their local broadband connections when indoors. Cellular operators will benefit as well, since femtocells will quickly evolve to enable advanced management capabilities with support for features such as remote diagnostics, configuration, and management updates. Both of these benefits will provide significant impetus for rapid adoption by smoothing the way for the deployment process and enabling carriers to efficiently support the devices in a cost-effective manner."

The 240-page study, report No. 8020, includes 54 figures and 27 tables. Details are on the company's website at www.fwdconcepts.com/femtocell.htm

As always, I invite your comments. 

Will Strauss
President and Principal Analyst
Forward Concepts
wis@fwdconcepts.com