Tech giants to enter femtocells market with 4G technologies

Immense Potential of Femtocells Technology boosting the Femtocells market

Network coverage has undergone a major overhaul–the advent of femtocells technology has boosted the network reception of cellular devices in ways more than one. Femtocells, also called microcells, is a small cell technology can be defined as short range mobile phone base stations– “micro” cell site –that provides wireless connectivity for various mobile devices including smartphones. 

The technology acts as a wireless station point and is a lot simpler than other seemingly complex systems like distributed antenna system. Home users can install the device in and around their apartment and can use it to support as many as four access points; enterprise-grade ones can typically connect up to 16 points. Resembling a wireless router, femtocells ensures seamless connectivity to home users and enterprises. These are compatible with various mobile telephony devices such as CDMA2000, WiMAX or UMTS and converts voice calls into voice over IP (VoIP) packets. These packets with the help of broadband connection communicate with the mobile operator's servers and utilizes the already available internet connectivity.

Recent Developments in Femtocells Market

Increasing adoption of value added services through smartphones coupled with reduction in cost of mobile devices and internet connectivity devices foster the growth of femtocell market. Recent technological advancements in 3G & 4G LTE technology have boosted the adoption of femtocells across enterprises. Many major technology providers in collaboration with prominent makers of mobile devices are actively involved in providing high-end small cells technology to enterprises faced with connectivity problems by boosting wireless coverage indoors. At the beginning of this year, Verizon Enterprise Solutions and the networks division of Samsung Electronics America has announced the launch of 4G LTE Network Extender that will help enterprises enhance wireless coverage inside the organizations. Using Samsung's femtocell technology, the extender can deliver a 4G LTE solution for organizations having areas of weak network connectivity; the potential is huge– a single unit services about 42 users and covers approximately 31,500 square feet. The commercial deployment have already been done by Verizon. Samsung has had about a 7-year relationship with the major U.S. communication provider in small cells technology beginning with 3G technology. Last year, the Korean major has announced that it will conduct a trial on its LTE-U enterprise femtocells. 

Market Scenario & Competitive Landscape 

The femtocell market in the U.S is growing at a rapid pace; geographically, it is the fastest growing market. As per a report published by Allied Market Research titled “World Femtocell Market- Opportunities and Forecasts, 2020” the femtocell device market was valued at $220.0 million, globally, in 2012 and is expected to grow at CAGR of 42.9% from 2013 to 2020. Developed countries such as Europe, Australia, and the U.K. witness a higher adoption rate of the technology as compared to developing ones.

The global femtocell market have enormous potential in developing economies, with companies trying to explore the untapped market potential in mobile users in these nations, especially in India and China. Key market players gain competitive advantage by making strategic agreements and collaborations for developing advanced products and high-end services; this will help to expand domain expertise. These players are adopting partnership as a strategy with small players, to offer them domain expertise for femtocell technology.

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