European femtocell market set for growth

Within five years European femtocell vendors will be enjoying revenues in excess of 400 million euros, according to a new report from Frost & Sullivan. The majority of European 3G mobile operators are already trialling femtocells with commercial launches planned for 2010. By 2014 the European femtocell market with grow to 11.8 million subscribers. 

However, the report warns that this growth cannot be achieved if the issue of femtocell costs is not addressed. Femtocell manufacturers estimate the cost of a single femtocell to be 150 euros, a figure which could increase to around 250 euros if features such as seamless mobility and interference management are included. With the reduced range offered by femtocells, more base stations will be required to provide the necessary coverage and capacity so the cost of individual femtocells will need to fall to around 100 euros if the market is to grow as forecast.

A key factor in achieving this reduction in costs will be a drop in chipset prices. Currently the cost of femtocell chipsets is around 50 euros and in order to reach the 100 euro femtocell target chipset prices will need to be around 8-10 euros.

For more on this story go to 3g.co.uk

Related stories:
Femtocells: Vodafone sets the pace with European launch
LTE femtocells may be more about coverage than speed
Femtocells: Is the future bright for Europe?

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