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Picocells and Femtocells: Will indoor base stations transform the telecoms industry?
Analysys Mason Group, March 2007
'The trend towards fixed–mobile substitution is increasing in many countries, and 3G networks are at a relatively early stage in their development. In this context, 3G femtocells could not have arrived at a better time for the mobile industry. A number of technologies have been over-hyped in recent years, but indoor base stations have the potential to transform the telecoms industry.'
Dr Alastair Brydon, Analysys Associate
Small, low-cost indoor base stations, often referred to as picocells and femtocells, could present mobile operators with an opportunity to make a radical departure from traditional cellular network architecture. The prospect of substantial cost savings and new service opportunities from this change is generating intense interest from operators, but many questions relating to the implementation of indoor base stations remain unanswered.
This new report describes how indoor base stations could be used across different wireless technologies, including 2G, 3G and WiMAX. It considers the business case for their application and identifies the issues that need to be resolved to enable widespread deployment. It quantifies likely revenue and cost benefits, including the savings that operators can make by avoiding macrocell network expansion. It also assesses the strategic impact of home base stations on the telecoms industry, including fundamental changes to network evolution. The report draws on interviews from a range of indoor base station experts and vendors in Europe and the USA.
Picocells and Femtocells: will indoor base stations transform the telecoms industry? answers your key questions:
-What are picocells and femtocells and who is promoting them?
-Which technologies can indoor base stations be applied to, and what are the implications in each case?
-What is the business case for the extensive deployment of indoor base stations by mobile operators? What are the realistic revenue opportunities? How much will indoor base stations cost and what savings could be made by avoiding further expansion of macrocell networks?
-What are the outstanding issues to be resolved before operators can embark on widespread deployment of indoor base stations?
-What strategic impacts (if any) will indoor base stations have on the telecoms industry in general?
Who should read this report?
-Mobile network operators: senior executives and technologists, to understand the business case for indoor base stations, the implications for network investment strategy and the major issues that are unresolved.
-Fixed network operators: senior executives and product managers, to assess the threat that indoor base stations pose to voice revenue and converged fixed–mobile services.
-Cellular network vendors: senior executives and product managers, to understand the consequences of indoor base stations for the traditional cellular network architecture and to identify emerging players in the market, which could become partners or competitors.
-Indoor base station vendors: senior executives and product managers, to strengthen the business case for indoor base stations and to understand the critical issues and questions that mobile operators will raise.
-Financial analysts and investors: to understand the potential impact of indoor base stations on the mobile (and fixed) industry and the investment opportunities that they could create.
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