SOURCE: Infonetics Research

December 13, 2007 16:43 ET

Femtocell market forecast by Infonetics Research to reach $630M in 2010

LONDON--(Marketwire - December 13, 2007) - A new report from market research firm Infonetics Research says worldwide sales of GSM/GPRS and 3G femtocell access points will heat up quickly once femtocell services become more widely available, with unit shipments expected to grow 10-fold from 2007 to 2008, and revenue reaching more than $630 million in 2010.

Femtocells are small, low-power, indoor cellular base stations that can achieve higher-quality local-area coverage and allow mobile operators to extend their cellular footprint in the home and office environment. Infonetics' report, "Femtocell Access Points Market Outlook," explains that the femtocell concept can be applied to a variety of wireless technologies, such as GSM, W­CDMA (including HSPA), CDMA2000 (including EV-DO), 4G LTE, WiMAX, and WiBro, but not all of these applications will be necessarily commercially justified.

The greatest opportunity, the report indicates, will be presented by 3G femtocells that are deployed in households, where they can be used to provide consistent high-speed coverage as well as improved home-zone type tariffs and services for customers. 3G femtocells offer a practical and potentially much less expensive alternative to enhancing coverage by further investing in denser 3G macrocell networks. In addition, as femtocells are backhauled over an Internet connection, such as a consumer's DSL line, the mobile operator could make operational expenditure savings on macrocellular backhaul.

"Femtocells could allow mobile operators to make a significant shift away from just relying on traditional cellular network architecture; the prospect of capex and opex savings combined with new personal broadband service opportunities is generating intense interest from operators in femtocells, and more vendors are developing products. If the hype translates into deployment, femtocells could radically transform the economics of mobile data and content-based services," said Richard Webb, wireless analyst for Infonetics Research.

Other highlights from the report:

-- In 2010, GSM/GPRS femtocells will account for 6% of worldwide
   femtocell access point revenue, W-CDMA femtocells will account for
   59%, CDMA2000 femtocells 35%

-- The strongest early markets for femtocells are in developed
   countries; it is likely that the large potential of Asia Pacific,
   and EMEA will drive femtocell subscriber and equipment revenue
   growth in the long term

Infonetics' femtocell report provides 2007 to 2010 worldwide and regional market size and forecasts for GSM/GPRS and 3G femtocell access points, tracking revenue, unit shipments, revenue per unit, and mobile subscribers. The 3G femtocell segment is broken out by W-CDMA and CDMA2000 femtocells. Mobile subscribers are broken out by 2G/2.5G GSM,3G W-CDMA,2G/2.5G CDMA, and 3G CDMA2000 subscribers.

View report highlights and more at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Contact:
    Richard Webb
    Directing Analyst
    WiMAX, WiFi & Mobile Devices
    Infonetics Research
    +1 408-583-3369 (VoIP line)
    +44 (0) 1689-851-618
    Email Contact