A recent report conducted by In-Stat (News - Alert), a digital communications market research firm, found that one of the biggest challenges for wireless subscribers is a lack of indoor coverage.

 

According to In-Stat, wireless carriers are beginning to realize that with the introduction of 3G services, if they fail to address the indoor coverage issue, this new service will not be openly embraced by consumers. However, the cost to address these weaknesses with traditional macro base station solutions is too high and not possible for many mobile operators.

 

Allen Nogee, an Analyst at In-Stat said, "Microcells, picocells, and femtocells address these challenges in a much more cost-effective manner. By providing smaller and less powerful base stations in smaller areas, like public spaces, offices, and even homes, carriers can provide better coverage in more specific areas without a huge capital investment."

 

In-Stat’s recent research report, "The Itty Bitty Base Station Revolution: Worldwide Micro, Pico, and Femtocell Market Analysis,” explores the worldwide market for microcells, picocells, and femtocells. It studies the key market players for microcells, picocells, and femtocells and the business case affecting demand. Also included in the report is a five-year forecast for these segments, including regional forecasts.

 

In the report, In-State uncovered that by 2012, femtocells, picocells, and microcells are projected to exceed 31 million units. Sprint (News - Alert) currently the first carrier to promote a femtocell-based service, while mobile operators around the world are testing the numerous femtocell products planned for commercial availability in 2008.

 

The study also made the emergence of a new device segment called the Enterprise Picocell (News - Alert) known. These devices will configure themselves like home femtocells, but for the enterprise business customer.