Worldwide revenues will reach 931 million EUR in 2014
IDATE just published the third edition of its report “Femtocells”, which indicates that the market is ready for take off. In 2014, femtocell shipments should represent 23 million units worldwide for a total market of 931 million EUR. The compound annual growth rate for the market volume between 2010 and 2014 will be 159%.
“Following a slow start, the number of operators launching commercial femtocell services is now increasing quite rapidly, particularly in the US, Japan and developed parts of Asia”, comments Frederic Pujol, head of the mobile practice at IDATE.
Mass market beckons
• There are multiple drivers to femtocell adoption, both from the operator and the consumer perspective.
• From the operator’s point of view, femtocells offer a cost-effective means of providing additional coverage and capacity while reducing CAPEX/OPEX and improving retention.
• From the consumer perspective, femtocells offer improved residential cellular coverage, potentially lower in-home call charges and the ability to use one handset both in and out of the home.
• At this early stage in the industry’s development operators are mainly focussing on coverage and capacity problems, though some are now beginning to formulate a range of femto-based services.
• Concepts such as data offload in relation to the femtocell proposition are also steadily gaining ground and it is likely that, once the femtocell market develops further, a range of new femtocell-based business models will emerge.
• In the US and Japan, in particular, the conditions for a competitive market are increasingly falling into place and with them a greater likelihood of mass market adoption.
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