AT&T (T) will finally start the nationwide commercial roll-out of its much-awaited 3G femtocell (mini base station) product. The device (dubbed “3G MicroCell”), which is the first of its kind in the US, will reach markets across the country in mid-April 2010. AT&T has been conducting field trials of 3G MicroCell in several test markets since September 2009 and test lauched the product in selected markets.
Femtocell is a mini cell tower which connects to the service provider’s network using broadband and is aimed at improving indoor network coverage (as much as 5,000 square feet), providing low-cost unlimited in-home voice calling plan and reducing monthly communication expenditure. Wireless calls are routed over broadband to boost signals for improved voice conversation.
Leading carriers across the globe are banking heavily on the lucrative Femtocell market. Femtocell services used by 3G mobile subscribers are projected to generate revenues of approximately $9 billion by 2014.
In the US , Femtocell is currently offered by AT&T’s peers Sprint Nextel (S) and Verizon (VZ). Sprint became the first carrier in the world to commercially offer femtocell with the launch of “Sprint AIRAVE” in August 2008. Sprint was followed by Verizon which launched its femtocell product (“Wireless Network Extender”) in early 2009.
Moreover, Vodafone (VOD) became the first carrier in Europe to launch a femtocell product in the UK in July 2009. Spain’s Telefonica (TEF) is currently conducting trial runs through its subsidiary O2.
Jointly developed with Cisco Systems (CSCO), AT&T’s 3G MicroCell has been designed to improve wireless signal for both voice calls and data applications in home and small business settings and supports up to 10 3G capable cellular handsets.
This is in contrast to the femtocell products of Verizon and Sprint that does not support 3G data applications and works with 2G handsets. Moreover, Verizon’s femtocell only offers access to voice calls without any data support.
3G MicroCell is expected to garner attractive revenue streams for AT&T through new service offerings while providing a significant opportunity to reduce churn (customer switch) by means of improved service coverage.
3G MicroCell has been priced at $150 for an outright purchase compared to $100 for Sprint AIRAVE and $250 for Verizon femtocell. AT&T is offering a $19.99 monthly supplementary plan which allows customers to make unlimited calls through 3G MicroCell. Moreover, the carrier is offering a $100 mail-in-rebate on the device’s purchase price for the customers who sign up to this calling plan.
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