Femtocell Report 2011-2016: Analysing Operator Savings and Investments

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Market	Telecommunications
Report Type	Market Research
Country	Global
Published	24 May 2011
Number of Pages	137
Report Delivery	Email
Delivery Lead Time	1-3 hours, 24 hour max
Publisher	Visiongain
File Format	PDF

Femtocell revenues will reach US $27 Billion in 2016

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? The 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 Visiongain 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.

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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
3.3.1.1 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
4.18.3.1 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
4.19.1.1 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
4.20.1.1 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
4.21.1.1 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 the US (Q1 2011)
Table 4.2: Femtocell Commercial Deployments in Europe (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
2Wire
Ablaze Wireless
Acme Packet
Acme Packet
ADB
Aircent
Airvana
AirWalk
Alcatel-Lucent
Alpha Network
Argela
Askey Computer Corporation
AT&T
AuthenTec
avea (Turkey)
Bharti Airtel
Bouygues Telecom
BT
C&S Microwave
Cable&Wireless
Cellcom (US)
Cellcom Israel
China Mobile
China Telecom
China Unicom (China)
Chungwha Telecom (Taiwan)
Cisco
Comcast
Contela
Continuous Computing
CS Corporation
Datang Mobile
Deutsche Telekom
D-Link
du (UAE)
Ericsson
etisalat (UAE)
ETRI
FarEasTone (Taiwan)
Free (France)
Freescale Semiconductor
GCI
Gemalto
Genband
GENBAND
HSL (Hay Systems Ltd)
Huawei Technologies
ICL
Institute for Information Industry (III)
Intel
IntelliNet Technologies
InterDigital
ip.access
ITRI
Juni
KDDI (Japan)
Kineto Wireless
LG-Ericsson
Lime Microsystems
M1
Mapesbury Communications
Maxim Integrated Products
mimoOn
mobilkom austria
MOLDTELECOM (Moldova)
Mosaic (US)
Motorola
Movistar (Spain)
NEC
Network Norway
Node-H
Nokia Siemens Networks
NTT Docomo (Japan)
Optimus (Portugal)
Orange
Orascom Telecom
Panasonic
PCCW
picoChip
Pioneer Telephone
Powerwave Technologies
Qualcomm
Reliance Communications
Rogers Communications
Sagemcom
Samsung
SaskTel
SerComm
SFR (France)
SigNav
SingTel (Singapore)
SK Telecom (Korea)
SoftBank (Japan)
SOFTBANK MOBILE
SpiderCloud Wireless
Sprint Nextel
Starhub (Singapore)
Sumitomo Electric
Taiwan Mobile (Taiwan)
Tata Elxsi
Tatara Systems
TATUNG InfoComm
Technicolor
Telecom Italia
Telefónica O2 Europe
TELUS
Texas Instruments
The Carphone Warehouse Group
T-Mobile (UK)
T-Mobile (US)
Toshiba Research Europe
TRaC
TRaC Global
TrueMove
Turkcell
Ubiquisys
Verizon Wireless
Vodafone
Vodafone (Australia)
Vodafone (Greece)
Vodafone (Ireland)
Vodafone (Italy)
Vodafone (New Zealand)
Vodafone (Qatar)
Vodafone (Spain)
Vodafone (UK)
Wintegra
ZTE

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Femtocell Report 2011-2016: Analysing Operator Savings and Investments

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Femtocell revenues will reach US $27 Billion in 2016

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