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Femtocells coming to a home near you?
Expect 40 million subscribers by 2011, says analyst...

By Natasha Lomas

Published: Wednesday 23 January 2008

Femtocell technology - which boosts 3G network coverage indoors by piggybacking on a broadband connection - could find its way into tens of millions of homes in Western Europe in two years' time.

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Analyst house Frost & Sullivan is predicting subscribers in this region will number more than 21 million by 2010, rising to more than 39 million by 2011.

Femtocells improve the quality of service of 3G networks indoors where coverage can be patchy, meaning mobile users can enjoy both voice and data services from the comfort of their favourite armchair.

One barrier to rollout is the need to reduce the cost per unit of the hardware so consumers are not put off by a high price-tag. But Frost & Sullivan suggests operators may get around this by renting femtocells to customers.

Luke Thomas, programme manager at the analyst house, said in a statement: "Carriers have realised that it would be [a] long [time] before the cost of the femtocell will reach €100. They are now considering renting out femtocells to users for a long contract period, rather than allowing them to buy it outright."

Networking giant Cisco has recently made a show of its interest in the emerging tech by investing in ip.access, a Cambridge-based femtocell manufacturer - opening up the possibility of femtocells being integrated into other consumer entertainment hardware, such as set-top boxes, which Cisco already sells.