Femtocell rumour mill: Is leading developer about to exit manufacturing?

While company executives deny speculation that the company strategy is under review, one of the leading pioneers of femtocell technology, UK-based Ubiquisys, is believed to be actively considering an exit from manufacturing miniature base stations.

According to Unstrung, a source claims the company is looking to move away from building the hardware and become a software company focused on licensing its designs and software stack. Ubiquisys currently uses the manufacturing facilities of the Sony UK Technology Centre for its ZoneGate femtocell device.

Given that femtocell uptake has not tracked market forecasts, a shift away from producing the hardware could make sense in these financially restrictive times--albeit that Ubiquisys has Google and T-Mobile International as strategic investors and supply contracts with Japan's Softbank and Orange.

The company's marketing VP, Keith Day, told Unstrung that "plans or speculation to change our strategy are premature if not completely off the mark." However, he did admit that the company would announce its next phase of expansion in the market in the next two weeks.

News that a femtocell developer is revamping its European manufacturing strategy would not be a first. Radioframe Networks announced its exit from the femtocell manufacturing business earlier this year but will continue to make chips for femtocells.

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