Femtocell Again

Folks we have covered this before. Let me say its an interesting technology. But as soon as you tell a customer that some of their bandwidth could possibly be used by their neighbor for cell calls the jig is up. Then of course there are the legal implications that are pending in both the House and Senate on open access. But there is a niche for this, after the jump. –

The most recent report from ABI Research concludes that 2008 will remain “fairly low-key” for femtocell vendors, as only about 100,000 units are expected to ship by year’s end. Next year, the industry will see results from more than 20 trials currently underway, but the firm doesn’t expect units to ship in the tens of millions until 2010.

“By 2010, femtocell silicon solutions will have been optimized to the degree that $100 price points for femtocell access points will be within reach and OEMs’ order books will have the volume to sustain critical wholesale price reductions,” wrote Stuart Carlaw, VP and research director at the firm.

“The turning point for this market will be late 2009. There is little doubt that all the technical hurdles regarding femtocell deployments can be overcome. The really critical issue will be whether initial carrier deployments are supported by robust business models and service plans that extend beyond pure fixed-mobile substitution goals.”

The niche? Industrial warehousing. Think about it. The AP will probably go for less than $500 otherwise I don’t think it would make it commercially in the residential market. Especially when 900mhz wireless sets are so cheap. Think about it — I buy the base, maybe not even hook it up to the broadband connection. Then buy some cheap $10 used cellular hand sets. I have a in-house communication system at ¼ a similar proprietary system or the nextel system.