Femtocell base-stations turbocharge indoor mobile coverage
With most people in mature Western markets now in possession of at least one mobile device, operators are obviously as much concerned with retaining existing customers as they are with securing new ones. This is why capacity growth is so vitally important. Retail price tariffs are now so closely bunched that the principal motivation behind any switch to a different operator is more likely to be related to reception issues and the perception that they might be resolved by switching suppliers. This might, of course, become a significant problem in densely populated urban areas.
To help head off this threat, most leading operators like Vodafone are encouraging the use of Femtocell technology by its customers even if it means carrying the costs themselves. This basically involves the use of small base stations within one's home or office. These use access to the broadband network to boost reception where it might otherwise be either very limited or totally non- existent.
Over the next 5 years, it is estimated that over 100 million small cells will already have been installed worldwide of which residential Femtocells will account for over a third. Not only will these Femtocells help solve problems of coverage and capacity but they will also enable new-services for carriers.
In Vodafone's case, they have opted to distribute Alcatel- Lucent's Femtocell which they market under the self-explanatory name, SureSignal. In the UK, its customers spending over £60 per month get a free base-station while those on cheaper tariffs can have one for £5 per month. Even Pay- As- You- Go users can enjoy improved indoor coverage for a one- off outlay of £160. Of course, it only needs one device in each household to support multiple handsets.
The clever thing from Vodafone's point of view is that the Femtocell supplies all this extra coverage and capacity by routing calls over the user's broadband connection rather than by using the Vodafone cellular network. So far there is no sign that ISPs are getting too upset about this and it looks like a win / win situation with Vodafone's customers enjoying much improved reception at home while the company itself benefits from the freed up capacity.
The experience of Vodafone and other mobile operators to date suggests that Femtocells will also prove an effective weapon in obtaining and retaining customers in the far more fluid SME ( small and medium enterprises ) market. It has been shown that, in the USA as just one example, roughly a third of such businesses have experienced problems with indoor coverage at their premises and this percentage rose to 45% when the same users were at home (where much of their business is conducted ).
The inevitable conclusion seems to be that, with over half of mobile calls being made indoors, the future for Femtocells has never looked brighter.
Questions and Answers
We already know that small cells are bringing huge advantages to the mobile phone world by delivering 5 bar signal strength to the home or office which is where around two thirds of mobile phone usage takes place. At the same time they are capable of indirectly holding down phone charges as they divert call traffic down the internet rather than across mobile networks.
As with so many people nowadays, my business life does not consist of a defined nine to five period when I am sat at my desk and switch off the minute I leave the office. About as much of my working day seems to be spent at home as it does at my " official " place of work. This means that, since my clients do not know where to find me at any one time, my mobile is probably my most essential business tool.
From a standing start a year ago, the proportion of femtocell deployments which include business offerings has risen from zero to nearly a third according to Informa Telecoms & Media.
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