Available Now – Femtocells: Analysing the Business Case
Research and Markets (http://www.researchandmarkets.com/research/f336b6/femtocells_analys) has announced the addition of the “Femtocells: analysing the business case” report to their offering.
Femtocells are small cellular base stations, which are installed in the home and backhauled via the home’s fixed broadband access line. We have identified three main approaches for the business model:
A model driven by coverage improvements – femtocells could help increase voice and data service usage in the home, and decrease churn. This is particularly relevant in countries with poor indoor coverage for cellular voice a model driven by a decrease in infrastructure costs – based on offloading some of the cellular traffic from the macrocell network and reducing the need to invest in macrocells to cope with increases in traffic.
A model driven by the development of new service offerings – to generate incremental revenues from specific features or tariffs available when at home.
This report primarily aims at helping vendors and operators understand the economics of femtocell deployments. Our main focus is to understand the cost impacts of rolling out femtocells and how various market parameters can influence the outcome of the business case.
CONTENTS: Table of contents Key messages Introduction Objective of this report Different business models for femtocells Components of the femtocell business case References Component 1: femtocell costs Component 2: macrocell network off-load cost savings Voice and data usage in the home Cost modelling Understanding the impact of service usage and 3G market conditions Understanding the impacts of deploying femtocells in suburban areas Understanding the impacts of targeting heavy users Understanding the impacts of promoting family offerings Component 3: femtocell consumer propositions The starting point is voice Data services Table of figures Figure 1 Overview of business model options for femtocells Figure 2 Contrasting femtocell business case scenarios Table 1 Summary of macrocell network assumptions Table 2 Macro-network parameters (macrocell network cost savings model) Figure 3 Annual macrocell network cost savings: different scenarios for network usage and 3G market conditions (per customer) Figure 4 Annual macrocell network cost savings for different scenarios of network usage and 3G market conditions (per femtocell) Table 3 Parameters for urban/suburban macrocell network cost savings model Figure 5 Comparison of annual macrocell network cost savings for urban and suburban environments Table 4 Parameters for usage level macrocell network cost savings model Figure 6 Macro-network cost savings for different service usage levels (per femtocell) Figure 7 Cost saving gains by targeting heavy users (% increase of macrocell network cost savings) Table 5 Femtocell family offering parameters Figure 8 Macro-network cost savings by average users (per femtocell)
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