Femtocells in the Consumer Market:
business case and marketing plan

Published by Analysys Mason (November 2007)

 

Dr Mark Heath, Director of Research at Sound Partners Dr Mark Heath
Director of Research, Sound Partners

Dr Alastair Brydon
CEO of Sound Partners

 

  “Success with femtocells is not guaranteed, and a focus on low-cost voice telephony could prove disastrous. In our report, we study the business case for femtocells in order to pinpoint the circumstances in which femtocells are commercially viable. We define compelling consumer propositions and marketing plans for this exciting new technology.”

 
 

Product overview

It's now time for mobile operators to define viable business cases for 3G indoor base stations, commonly referred to as femtocells, and to develop compelling service propositions and marketing plans that make those business cases a reality. There is increasing excitement in the mobile industry about the potential for femtocells. Equipment vendors and mobile network operators are busily developing and evaluating products and considering how to integrate large numbers (potentially millions) of femtocells into existing mobile networks. However, the success of femtocells is not guaranteed, and the cost of failure could be very high. Much early attention has been focused on the technical challenges of femtocells, but mobile operators should concentrate on making viable business cases and delivering successful consumer propositions.

This report shows operators how they can profitably derive revenue from femtocells by defining compelling consumer propositions with which to target key segments. It considers both voice telephony and a number of non-voice services that will be critical to a viable business case. The report quantifies the business case for operators deploying femtocells for a range of customer types and service mixes in order to pinpoint the most attractive opportunities. The report also compares the business case for femtocells with those for other options, including network sharing, UMA services, home-zone tariffs and traditional bundles, and defines exactly where, how and when femtocells should be deployed to achieve the best return.

 

Full information on the report 

Click here to get full information on the report from Analysys Mason.

 

This report answers your key questions

Femtocells in the Consumer Market: business case and marketing plan answers your key questions:

  • What are the major elements of the business case for femtocells, in terms of revenue, cost savings and investment requirements?

  • Which market segments may be interested in femtocells (or the services they enable), and which of these are the most attractive for mobile network operators?

  • Is there a business case for voice-telephony services alone and, if so, in what circumstances? What approaches should mobile network operators take with voice services?

  • What is the financial payback for a range of customer segments and service mixes? How can you achieve payback in less than six months?

  • To what extent can non-voice services improve the business case for femtocells? Which non-voice services will really make the biggest difference?

  • What is the most compelling service offering for consumers?

  • How could femtocells allow mobile network operators to make dramatic reductions in investment in conventional 3G macrocellular networks and dedicated broadcasting networks (such as DVB-H)? How much could mobile network operators save, and what difference will this make to the business case for femtocells?

  • How does the business case for femtocells compare with those for other options, such as home-zone tariffs, bundled services, dual-mode handset services and network sharing?