Femtocell Report 2011-2016: Analysing Operator Savings and Investments

Nov 24, 2011, 06:50 ET from Reportlinker

NEW YORK, Nov. 24, 2011 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Femtocell Report 2011-2016: Analysing Operator Savings and Investments


Femtocells have entered into the growth stage of their lifecycle in 2011. With a range of benefits for enterprise and residential subscribers, Femtocells technology is poised to increase data ARPU for operators across the globe. Using Femtocells, operators can also embark on the value discipline of customer intimacy thereby reducing the churn rates.

Femtocell technology is poised to have a transformative affect on the current data usage crisis that has led to overloaded mobile networks. Our research suggests that operators and Femtocell equipment providers should formulate emergent strategies to capitalise on Femtocells' unique revenue saving potential in 2011. This report details new business models that will help players to maximise their gains in this sector. 

Femtocell - Strategies and Potential Revenues

What chances are there for monetisation? Visiongain research has shown that Femtocell revenues will reach US $27 Billion in 2016. To capitalise, we describe the right strategies to embark upon within this holistic and timely report. The report further presents Femtocells' revenues and potential savings from 2011-2016. You will also discover the current Femtocell standards, Femtocells' technological architecture and the various competing technologies.

Why are Femtocells so Important Now?

Operators need to reduce churn rates and deal with the data usage and backhaul crises. This report provides crucial data and forecasts for any current or potential member of the Femtocell ecosystem all of whom can save OPEX and CAPEX through careful positioning.

What is Different about this Report?

We conducted an independent and unbiased non-vendor affiliated assessment of the Femtocell topic. We interviewed several key industry players from equipment manufacturers to technology suppliers in order to gain an in-depth view of the market. We believe such a research will help you in assessing the market potential and in designing Femtocell strategies. 

Some of the key points that emerged from this research include:

• Market Size;

• Key Forecasts from 2011-2016;

• New Business models for Femtocell;

• Femtocell Standards;

• Key Vendors;

• Market Drivers/Market Restraints;

• Femtocell Ecosystem; and

• Costs, Savings and Opportunities.

Who needs to read this report?

• Service Providers - To gain the most from Femtocell adoption savings in CAPEX and OPEX combined, operators need to design carefully considered strategy. This report details the business models that will ultimately lead to new revenue streams and savings.

• Residential Subscribers - Femtocells' success will rely mostly on residential subscribers' uptake. With benefits that include cheaper costs and improved service, this report details surveys that reveal exactly what residential subscribers' want and are willing to pay for.

• Enterprises - This report details the benefits that enterprises can derive from Femtocells. The report also presents the ratio of residential to enterprise users for 2011 and forecast figures for 2016.

Increase your understanding of this exciting market by ordering: Femtocell Report 2011-2016: Analysing Operator Savings and Investments

Visiongain is a trading partner with the US Federal Government

CCR Ref number: KD4R6

Table of Contents

Executive Summary

E1. Why Femtocells have Become Important?

E2. Femtocells Entering Rapid Growth Phase

E3. Femtocell Business Case

E4. Impact of Wi-Fi: a concern for Femtocells?

E5. Backhaul - Are Femtocells Indispensible?

E6. Points Emerged from this Research

1. Introduction

1.1 Femtocell Technology Overview

1.1.1 Femtocell Access points - FAPs

1.1.2 Femtocell Gateway

1.1.3 Management and Operation systems

1.2 Aim of the Report 

1.3 Questions Answered by this Report 

1.4 Structure of the report

1.5 Methodology 

2. Strategic Technology Overview 

2.1 Key Attributes of Femtocells

2.1.1 Femtocells use Standard Protocols

2.1.2 Femtocells Operate in Licensed Spectrum

2.1.3 Femtocells Enhance Coverage and Capacity 

2.1.4 Femtocells Provide Internet-grade Backhaul

2.1.5 Femtocells Provide Opportunity to Realise EoS

2.1.6 Femtocells are Self-Organising and Self-Managing 

2.1.7 Control Maintained by Licensed Operators

2.1.8 Femtocell Applications and Use

2.1.9 Residential Use

2.1.10 Enterprise Use

2.1.11 Operators use Femtocell to Address Service Issues

2.1.12 Other Uses of Femtocells

2.2 Standardization of Femtocells 

2.2.1 Femtocell Standardisation - 3GPP 

2.2.2 3GPP Standards for UMTS Femtocells

2.2.3 Femtocell Standardisation - 3GPP2

2.2.4 Femtocell CDMA Standards

2.2.5 3GPP2 Standards for CDMA Femtocells Technical Overview

2.2.6 SIP/IMS-based 1x circuit services architecture

2.2.7 Femtocell Standardisation - WiMAX

2.2.8 LTE Femtocell Standards 

2.2.9 Standardisation of LTE Femtocells

2.2.10 LTE Femtocell Architecture

2.2.11 Standards for Device Management

2.2.12 Service and Femtozones

2.2.13 Standards for Femtozone Service Enablement

2.2.14 Potential Femtocell Services and Applications

2.2.15 LTE Femtocells - Deployment Challenges

2.2.16 LTE Femtocell Spectrum

2.2.17 Opening Up Spectrum Bands

2.2.18 Re-using Existing Bands

2.2.19 Spectrum and economic efficiencies

2.2.20 Innovation and competition

2.2.21 Backhaul - How Femtocells Can Help?

2.2.22 LTE Femtocell Conclusion

2.2.23 Regulatory Advantages of Femtocells

2.2.24 Low CAPEX Solution to Improve Coverage

2.2.25 Femtocells Help Operators to use Existing Licensed Spectrums Efficiently

2.2.26 Innovation and Opportunity Offered by Femtocells

2.2.27 Regulatory Disadvantages of Femtocells

2.2.28 Impact on Spectrum Licensing

2.3 Public Health Concerns

2.3.1 Research to Safeguard Users 

2.3.2 Are Known Exposure Limits Adhered To?

2.3.3 Femtocell Power Level Transmission

2.4 How do Operators Prohibit users of Femtocell on Unauthorised Frequencies and Locations?

2.4.1 Can Femtocells be Hacked?

2.4.2 Do Femtocells Comply with Existing Standards?

2.4.3 Is there a Need to Register Base Station Locations? 

2.4.4 What Other Regulatory issues should be Considered?

2.4.5 Are Femtocells Open or Closed Devices?

2.4.6 Who owns the Femtocells?

2.4.7 Do Femtocells always backhaul to an Operator's Network?

2.5 Customer Surveys - Femtocell Demands and Requirements by Region

2.5.1 Current Problems with Mobile Service

2.5.2 Churn Rates and Call Quality Issues

2.5.3 Dropped calls and ARPU

2.5.4 Churn Rates and ARPU Segments

2.5.5 Voice Quality and Customer Referral

2.5.6 Consumer Interest in Femtocells by Region 

2.5.7 Femtocell Appeal and Churn Rates 

2.5.8 Femtocell Appeal and ARPU Segments

2.5.9 Pricing Strategies - How much are Consumers Willing to Pay for Femtocells?

2.5.10 Effect of Femtocell on Potential Churn Reduction

2.5.11 Churn rates for Subscribers Leaving for a Rival Provider Offering Femtocell

2.5.12 Provider Consolidation for Femtocell

2.6 Summary of Consumer Responses 

2.6.1 Residential interest 

2.6.2 Service Provider Interest

2.6.3 Regional Differences in Femtocell Demands

2.7 LTE Driving Femtocell uptake

2.7.1 Drivers for LTE and Femtocells

2.7.2 Barriers for Enterprise Use

2.8 Potential CapEx and OpEx Savings with LTE Femtocell Business Model

2.9 Femtocell for Indoor Coverage

2.9.1 Enhanced Indoor Propagation Environment

2.9.2 Rich Angular Multipath

2.9.3 Greater LTE Efficiency

2.9.4 Unlimited Communication? Shannon's Law and Coopers Law

2.10 Multiple Different Environments suited to Femtocells

2.10.1 Femtocells for Residential use

2.10.2 Femtocells for Enterprise Use

2.10.3 Femtocells for Outdoor Use

2.11 Femtocell Plugfest 

2.11.1 Plugfest Outcome 

3. Femtocell Market Structure 

3.1 Key vendors

3.2 Femtocell Equipment Market

3.2.1 Future of Femtocell Equipment Market

3.3 Femtocell Ecosystem

3.3.1 Femtocell Ecosystem Members End to End Solution providers

3.3.2 Femtocell Access Point providers

3.3.3 Femtocell Core Network providers

3.3.4 Software and Component providers

3.3.5 Other

3.3.6 Segmentation of Ecosystem Members

3.4 The Femto Forum

3.5 Femto Forum Goals (2011)

3.5.1 Encourage Operator Deployments

3.5.2 Consumer Attitudes and Value Proposition 

3.5.3 Metro/outdoor Cells

3.5.4 Integrated Femtocells Wi-Fi Networks 

3.5.5 LTE Femtocells 

3.5.6 Enterprise Femtocells 

3.5.7 Service enablement

3.5.8 Open interoperability 

4. Operator Options and Strategies

4.1 Femtocell Operator Offerings by Region (Q1 2011)

4.2 Femtocell Deployment commitments - What does the future hold?

4.3 Customer Segmentation of Femtocell Deployment Offerings

4.4 Femtocell Commercial Offerings by Region and Technology

4.5 Business Case - LTE Femtocells

4.6 Return On Investment - How much can Femtocells Save?

4.7 Regulation Developments (2011)

4.8 Data - How will Operators cope? 

4.9 Does 4G have the capacity for Data usage Demands?

4.10 Base Stations - Location concerns

4.10.1 Base Station - Solution

4.11 Mobile Data Growth 

4.12 Is Wi-Fi a Threat to Femtocell Uptake?

4.13 Unlicensed Mobile Access 

4.13.1 Is UMA a Threat to Femtocell Uptake? 

4.14 Femtocells for Offload

4.14.1 What is Data Offload?

4.14.2 Traffic jam - Video to blame?

4.14.3 Will Data Offload be Effective?

4.14.4 Data Costs

4.15 Offload and Picocells

4.16 How will Femtocell Adoption Impact Operator Valuations?

4.17 Offload by Region

4.17.1 Offload Benefits

4.17.2 Offload Barriers

4.18 Case Study - Acme Packet 

4.18.1 Acme Packet - Company Information

4.18.2 Acme Packet's Market 

4.18.3 Question and Answer Session with Acme Packet Acme Packet's Femtocell Offering 

4.18.4 Acme Packet on why Femtocell Benefits Service Providers 

4.19 Case Study - ip.access

4.19.1 ip.access - Company Information Question and Answer Session with ip.access

4.19.2 Industry Challenges 

4.19.3 Benefits and Drawbacks of Femtocell 

4.19.4 Market Drivers 

4.19.5 Market Restraints 

4.19.6 Key Femtocell segments 

4.19.7 Competing Femtocell Technologies and Strategies 

4.20 Case Study - Continuous Computing

4.20.1Question and Answer Session with Continuous Computing Industry Challenges

4.20.2 Benefits and Drawbacks of Femtocells 

4.20.3 Market Drivers 

4.20.4 Market Restraints 

4.20.5 Femtocell Market Segments 

4.20.6 Key Femtocell Segments 

4.20.7Competing Femtocell Technologies and Strategies 

4.21 Case Study - Picochip

4.21.1 Question and Answer Session with Picochip Key Femtocell segments 

4.21.2 Industry Challenges 

4.21.3 Benefits of Femtocell 

4.21.4 Market Drivers 

4.21.5 Market Segments 

4.21.6 The Obstacles to a Successful Femtocell offer

4.21.7 The State of the Femtocell Equipment Market 

4.21.8 The Business Case for Femtocell 

5. Market Forecasts and Trends 

5.1 FAP Access Points Forecasts

5.2 Femtocell Deployment 

5.2.1 Residential Femtocell deployment 

5.2.2 Enterprise Femtocell Deployment 2010-2016

5.3 Femtocell Market Value 

6. Conclusion and Recommendations

6.1 SWOT Analysis - From End Users Perspective

6.2 How Interested will Subscribers be in Femtocells?

6.2.1 New Applications to drive Subscriber Interest?

6.3 Landline Subscriptions down 

6.4 Broadband Subscriptions Up

6.5 SWOT Analysis - From Operators Perspective

6.5.1 Operators Set to Reap all the Benefits?

6.6 The Trouble with Base Stations

6.7 Turning Homes into Cell Sites

6.8 Overview - Femtocell Future

6.9 Points to Address - Final Challenges in Femtocell's Successful Adoption

6.9.1 Interference Management

6.9.2 Proprietary Interfaces

6.9.3 Access Model

6.9.4 Access Point Costs

6.9.5 Core Network Integration

6.10 Key Findings 

List of Figures

Figure 1: Femtocell operation diagram

Figure 1.1: Femtozone

Figure 2: UMTS Femtocell Architecture

Figure 2.1: 3GPP2 Femtocell Architecture Overview

Figure 2.2: Femtozone Service

Figure 2.3: Femtocell Application Diagram

Figure 2.4: Business Case Drivers for LTE Femtocells

Figure 2.5: Rich Angular Mulitpath

Figure 2.6: Shannon's Law: Femtocells and LTE

Figure 2.7: Femtocell Multiple Environment Deployments

Figure 3.1: Femtocell Ecosystem

List of Tables

Table 2.1: Femtocell Standardisation - 3GPP 

Table 2.2a: Proposed LTE Roll Out Schedule: Operators

Table 2.2b: Proposed LTE Roll Out Schedule: Operators

Table 2.2c: Proposed LTE Roll Out Schedule: Operators

Table 2.3: Price Sensitivity of Femtocell Services Currency conversions 

Table 2.4: Price Sensitivity of Femtocell Services Currency conversions 

Table 2.5: Companies Involved in Plugfest

Table 3.1: Femtocell Vendor Market Share 

Table 3.2: Key Femtocell Vendors

Table 3.3: Femto Forum Members (2011)

Table 4.1 Femtocell Commercial Deployments in theUS (Q1 2011)

Table 4.2: Femtocell Commercial Deployments inEurope (Q1 2011)

Table 4.3 Femtocell Commercial Deployments in Asia/Pacific (Q1 2011)

Table 4.4 Femtocell Commercial Deployments in Rest of World (Q1 2011)

Table 4.5 Femtocell Deployment Commitments (Q1 2011)

Table 4.6 Femtocell Offerings by Segment (2011) 

Table 4.7: Femtocell Offerings by Region and Technology (2011) 

Table 4.8: Femtocell Business case - Cost, Savings and Churn

Table 4.9: Femtocell Business case - Enhanced Value Figures

Table 4.10: Femtocell Business case - Return on Investment

Table 4.11: Wi-Fi vs. Femtocell - End Users 

Table 4.12: Wi-Fi vs. Femtocell - Operators 

Table 4.13: Femtocell vs. UMA 

Table 6.1: Broadband Subscription by Country 

List of Charts

Chart 2.1: Worldwide LTE Mobile Broadband Users 2010-2016

Chart 2.2: Global Mobile Broadband Subscribers, 2010-2016

Chart 2.3: Technology Penetration (2016)

Chart 2.4: Problems with Mobile Service

Chart 2.5: Churn vs. Call Quality

Chart 2.6: Dropped Calls vs. ARPU

Chart 2.7: Likelihood of Churning vs. ARPU

Chart 2.8: Satisfaction with Voice Quality - Likelihood to Recommend Service

Chart 2.9: Appeal of Femtocells 

Chart 2.10: Femtocell Appeal and Churn Rates

Chart 2.11: Femtocell Appeal and Household ARPU

Chart 2.12: Price Sensitivity of Femtocell Services 

Chart 2.13: Price Sensitivity of Femtocell Services 2

Chart 2.14: Effect of Femtocells for Reducing Churn

Chart 2.15: Likelihood to Churn to a Competitor Offering Femtocells

Chart 2.16: Provider Consolidation for Femtocell

Chart 2.17: Network Cost Savings

Chart 3.1: Femtocell Vendor Market Share 

Chart 3.2: Top Femtocell Vendors by Revenue 

Chart 3.3: Femtocell Equipment Shipments

Chart 3.4: Segmentation of Vendors in Ecosystem

Chart 4.1: Femtocell Offerings by Segment (2011) 

Chart 4.2: UMTS Femtocell Offerings by Region (2011) 

Chart 4.3: Mobile Subscriber Data Traffic (2010-2016)

Chart 4.4: Capacity and Infrastructure demands

Chart 4.5: Popular location for Mobile Data Usage

Chart 4.6: Mobile Data Traffic by Application 

Chart 4.7: Data Costs per GB 

Chart 4.8: Data Offload by Region (2011)

Chart 4.9: Data Offload by Region (2016)

Chart 4.10: Acme Packet Market Share of Service Providers (2011)

Chart 4.11: Acme Packet Market Revenues (2011)

Chart 4.12: Picochip Sales Forecast 

Chart 5.1: Femtocell Access Point sales and users (2010-2016)

Chart 5.2: Femtocell Access Point technology forecast (2016)

Chart 5.3: Femtocell Deployment 2010-2016

Chart 5.4: Residential Femtocell Deployment 2010-2016

Chart 5.5: Enterprise Femtocell Deployment 2010-2016

Chart 5.6: Femtocell Market Value 2010-2016

Companies Listed


Ablaze Wireless

Acme Packet

Acme Packet






Alpha Network


Askey Computer Corporation



avea (Turkey)

Bharti Airtel

Bouygues Telecom


C&S Microwave


Cellcom (US)

Cellcom Israel

China Mobile

China Telecom

China Unicom (China)

Chungwha Telecom (Taiwan)




Continuous Computing

CS Corporation

Datang Mobile

Deutsche Telekom


du (UAE)


etisalat (UAE)


FarEasTone (Taiwan)

Free (France)

Freescale Semiconductor





HSL (Hay Systems Ltd)

Huawei Technologies


Institute for Information Industry (III)


IntelliNet Technologies





KDDI (Japan)

Kineto Wireless


Lime Microsystems


Mapesbury Communications 

Maxim Integrated Products


mobilkom austria


Mosaic (US)


Movistar (Spain)


Network Norway


Nokia Siemens Networks

NTT Docomo (Japan)

Optimus (Portugal)


Orascom Telecom 




Pioneer Telephone

Powerwave Technologies


Reliance Communications 

Rogers Communications





SFR (France)


SingTel (Singapore)

SK Telecom (Korea)

SoftBank (Japan)


SpiderCloud Wireless 

Sprint Nextel

Starhub (Singapore)

Sumitomo Electric

Taiwan Mobile (Taiwan)

Tata Elxsi

Tatara Systems



Telecom Italia

Telefonica O2 Europe


Texas Instruments

The Carphone Warehouse Group 

T-Mobile (UK)

T-Mobile (US)

Toshiba Research Europe


TRaC Global




Verizon Wireless


Vodafone (Australia)

Vodafone (Greece)

Vodafone (Ireland)

Vodafone (Italy)

Vodafone (New Zealand)

Vodafone (Qatar)

Vodafone (Spain)

Vodafone (UK)



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Nicolas Bombourg
Email: nbo@reportlinker.com
US: (805)652-2626
Intl: +1 805-652-2626

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