Femtocell Revenues Will Remain Small Through 2010, Report Finds

Despite progress in the femtocell market, sales will likely remain light for the next 12 months, says Unstrung Insider

Sep 30, 2009

Although significant progress is being made in the femtocell market, including minimizing interference with the macrocellular network and creating standards for multivendor interoperability, sales of femtocells are likely to remain on the light side for at least the next 12 months, according to the latest report from Unstrung Insider (www.unstrung.com/insider), a paid research service from TechWeb's Unstrung (www.unstrung.com).

Femtocells: Market Outlook & Reality Check identifies and analyzes key issues that will affect the deployment of femtocells in consumer and enterprise markets through early 2011. It looks at how femtocells will affect the competitive landscape among wireless carriers, telcos, and MSOs. The report also profiles 14 leading femtocell equipment vendors, offering insight into which companies are best positioned to emerge as key players in this market.

  For a list of companies analyzed in this report, please see:

"Since early 2008, the industry has made significant progress toward resolving technological issues, including minimizing femtocell interference with the macrocellular network and creating standards for multivendor interoperability," notes Tim Kridel, research analyst with Unstrung Insider and author of the report. "There is still much to do on those fronts, but even if everything were resolved tomorrow, the lack of revenue-generating business models would still stand in the way of aggressive, widespread deployments."

Femtocells face a few challenges in the market, which will hinder them from wide adaption/use through 2010, according to Kridel. "Wireless carrier, telco, and multiple system operator (MSO) orders for femtocells will remain few and small through 2010 because they are still hashing out their business models and watching to see how trials and the handful of commercial deployments are faring," he says. "Wireless carriers are still trying to figure out how to use femtocells to sell new applications and services."

  Key findings of Femtocells: Market Outlook & Reality Check include:

  --  Industry-wide shipments could grow eightfold in 2010 to reach 4
      million units
  --  For telcos and MSOs, femtocells are a way to combat and leverage
      wireline displacement and to go out of region
  --  Operators and vendors agree femtocells are still too expensive for
      wide adoption
  --  Integrating femtocells into other devices, such as set-top boxes, does
      not slash femtocell costs enough to spur large telco and MSO
      deployments anytime soon

  --  Femtocells let wireless carriers reduce capex and opex - but not

Femtocells: Market Outlook & Reality Check is available as part of an annual single-user subscription (12 monthly issues) to Unstrung Insider, priced at $1,595. Individual reports are available for $900 (single-user license).

To subscribe, or for more information, please visit: www.unstrung.com/insider. For more information on all of Light Reading's Insider services, please visit www.lightreading.com/research.

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

  Jeff Claudino
  Director of Sales
  Insider Research Services

  Press/analyst contact:

  Dennis Mendyk
  Managing Director
  Insider Research Services

  About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused event company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces nearly 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit @ CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005 and operates as a unit of TechWeb.

About TechWeb

TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

  * 13.3 million business decision-makers: based on # of monthly connections

  About United Business Media Limited

UBM (UBM.L) focuses on two principal activities: worldwide information distribution, targeting and monitoring; and, the development and monetization of B2B communities and markets. UBM's businesses inform markets and serve professional commercial communities - from doctors to game developers, from journalists to jewelry traders, from farmers to pharmacists - with integrated events, online, print and business information products. Our 6,500 staff in more than 30 countries are organized into specialist teams that serve these communities, bringing buyers and sellers together, helping them to do business and their markets to work effectively and efficiently. For more information, go to http://www.unitedbusinessmedia.com/.

First Call Analyst:
FCMN Contact:

SOURCE: Unstrung Insider

CONTACT: Jeff Claudino, Director of Sales, Insider Research Services,
+1-619-229-9940, claudino@lightreading.com; or Press/analysts, Dennis Mendyk,
Managing Director, Heavy Reading, +1-201-587-2154, mendyk@heavyreading.com

Web Site: http://www.unstrung.com/