Although the femtocell holds much promise for carriers of all kinds, 2008 is forecast to remain a fairly low-key year for femtocell vendors, according to new data from ABI Research. Only about 100,000 units are expected to ship in 2008. 2009 will show the fruits of the more than 20 trials currently underway, but 2010 will be the year when the market moves to double-digit millions in volume.
According to ABI Research vice president and research director Stuart Carlaw, “By 2010, femtocell silicon solutions will have been optimized to the degree that $100 price points for femtocell access points will be within reach, and OEMs’ order books will have the volume to sustain critical wholesale price reductions.”
Although it’s an old cliché, it is true to say that when it comes to femtocells, it’s not a question of “if,” but “when.” Carlaw contends that, “The turning point for this market will be late 2009. There is little doubt that all the technical hurdles regarding femtocell deployments can be overcome. The really critical issue will be whether initial carrier deployments are supported by robust business models and service plans that extend beyond pure fixed-mobile substitution goals.” Should a carrier fail to pay heed to these needs and execute unsuccessfully in the early days, it could act as a braking force on the total market development.
The research found that although initial deployments are expected to be dominated by standalone products, the market seems destined to adopt a more integrated approach as price points permit femtocell functionality to be embedded in other products.
Femtocell Market Data provides a biannual update to the core forecasts included in the firm’s "Femtocell Market Challenges and Opportunities" Research Report. This forecast mirrors the one included in that report and is designed to provide an update incorporating all major changes in the market over the previous six months. Such an update is extremely important given the rapid changes in the dynamic and fast-growing femtocell market.
Both products are components of the Femtocells Research Service, while the Research Report is also included in the Mobile Networks Research Service.
ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call +1.516.624.2500.
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