Analysts and wireless service providers alike are talking more and more about a new, rapidly growing technology: femtocells. These mini access points are touted as the next big thing in the wireless space.

 

To find out more about what femtocells are, and why they matter, TMCnet. turned to Serge Pequeux (News - Alert), president and CEO at AirWalk Communications.

 

 

SP: Femtocells are compact cellular access points that provide premier cellular service inside homes, small offices and other environments where cellular penetration is restricted. Femtocells are an affordable solution for both subscribers and operators because they connect to the operator’s core network via an existing broadband connection, such as DSL or cable modem. Wireless operators can maximize their quality of service, reduce macro network costs, and provide a substitute for fixed wireline phone service in the residential market.

 

 

SP: The inherent structure and design of macro networks limits the flexibility of in-building coverage and capacity. Subscribers are demanding continuity of services whether they are mobile or in their homes. They enjoy the convenience of one mobile phone device, one phone number, one bill and multiple service applications and in most cases are prepared to pay extra for these features.

 

The physical structure of buildings often limits radio penetration, reducing reliable service and coverage. Femtocells promise to overcome these hurdles by offering mobility within confined areas and seamless service between networks. This can be achieved at a low cost to both the consumer and operator by implementing femtocells.

 

Competitive wireline technologies such as twisted pair, cables and fiber offer high quality broadband services in the home and office but they are tethered and restrict convenience. Furthermore, wireless home devices such as femtocells offer an inexpensive broadband connection with mobility as an alternative to WiFi. The convenience of one number for multiple services on femtocells remains an appealing factor, whether it’s on a PBX (News - Alert) in the office or a cordless phone in the home.

 

 

SP: Femtocells reduce a carrier’s operation and deployment costs and allow for the equipment to be installed at individual sites to improve coverage and capacity.

 

Femtocells deliver the traffic to the core network through the existing home broadband connection. To illustrate the benefits of this, as multimedia services such as IPTV and high-bandwidth data services continue to grow femtocells will accommodate these data-hungry applications in the home, while macrocells continue to provide coverage for users outside the femtocell site. The femtocell will provide relief for the macro network.

 

Today, some 40 percent of home calls are made using a cellular phone within the residence. With the addition of a femtocell, operators can increase this number dramatically. Converting home phone usage from fixed line to cellular usage maximizes Minutes of Use and improves customer satisfaction levels. Once subscribers have established a premium cellular service within their home, the traditional fixed line becomes a redundant in the home and more residences will transition to a complete cellular system.

 

 

SP: The overall femtocell market is still in its infancy, but with dramatic growth curves are being forecasted by operators and analysts alike. Femtocell adoption has started in Europe and made its way to North America. Sprint (News - Alert) was the first provider to deploy the technology during 2007 in two test markets.

 

The major applications seen for these femtocells are improved residential coverage and the consistency of data that a femtocell provides in the home.

 

 

SP: The femtocell provides premium signal strength because it offers higher data rates from an access point positioned within feet of the handset, and it does not rely upon the macro network for service, which eliminates some common capacity challenges. The femtocell offers the quality and unsurpassed 3G coverage from the network directly inside a home or small office. Home users will not experience slow and at-capacity network issues that can occur during peak times on the macro network, since their femtocell is connected directly through the IP network.

 

The femtocell eliminates macro network capacity issues and facilitates ease of use for high-speed data applications such as videos, gaming and photo sharing. As multimedia data applications continue to become widely available and usage trends continue to grow exponentially, subscribers will enjoy the benefits of having a home access point to fully experience multimedia applications.

 

With a femtocell in the home subscribers now have the option to consolidate their fixed and mobile service, billing and applications on one service and the convenience of one account.

 

 

SP: AirWalk Communications offers operators innovative wireless IP network products that empower simple expansion, maximum flexibility and cost-effective implementations. At the core of the product line is the wireless industry’s first integrated transceiver and controller within a single, compact Radio Access Network (RAN). With a modular, stackable platform, operators are able to deploy systems more efficiently, and save on element space and build-out costs. 

 

AirWalk’s product simplicity makes it a preferred platform for macro, micro, pico and pilot beacon applications. The company’s product line includes two technologies (1xEV-DO Rev. A and 1xRTT) and operates on all global CDMA licensed frequencies. AirWalk is a privately-held company founded in 2002 and based in Richardson, Texas.

 

AirWalk's unique ability to develop small, modular access points places AirWalk in the optimal market position for leading the deployment of the femtocell within the industry. AirWalk has successfully integrated the radio transceiver and controller into a single unit for pico, micro and macro products.

 

 

SP: AirWalk is a CDMA femtocell innovator and manufacturer. AirWalk's unique ability to develop small, modular radio access points places AirWalk in the optimal market within the femtocell industry. AirWalk has successfully integrated the radio transceiver and controller into a single box for pico, micro and macro products—many of the technical challenges have previously been proven by AirWalk.

 

 

SP: The driving factors for the market are an increased customer satisfaction and retention level (reduced churn) that comes from the adoption of femtocells in the home. Continuity of cellular services in the home together with the flexibility of roaming throughout the macro coverage area with one phone device is very appealing to users.

 

 

SP: The industry estimates that approximately 10 percent of the 120 million CDMA subscribers need improved home cellular coverage, including those in close proximity to a macrocell tower.

 

The growth expectations for femtocells are highly encouraging. According to ABI Research, the femtocell market is estimated to grow to 150 million users worldwide by 2012; this number reflects 36 million units shipped per annum by 2012. Likewise, In-Stat (News - Alert), expects worldwide femtocell subscriptions (installed devices) to grow to 40.6 million by 2011, with femtocell end users reaching 101.5 million in that time span.

 

As femtocells become part of everyday life they will evolve technically to incorporate new wireless standards and become part of the home environment.

 

 

SP: AirWalk is entering an exciting phase in the wireless industry, a new facet of the market is about to emerge. We feel bullish about our position in this new IP world of instant communications serving all applications: voice (VoIP), internet (broadband), mobility (cellular VoIP and data) and video (IPTV and broadcasting).