The wave of interest in femtocells continues to gather momentum, and with a number of sizeable carrier RFPs currently in circulation, the market looks set to see rapid growth over the next few years. By 2012 the market for femtocells looks set to represent 36 million shipments with an installed base of nearly 70 million femtocells serving over 150 million users. This represents a turnover equal to one third of the Wi-Fi market.

Research director Stuart Carlaw says, “At a time when carriers are generally enthusiastic but are struggling to get a working, comprehensive business plan in place, it is important to consider that no matter how attractive the service offerings a femtocell-based solution can bring, the sheer savings from backhaul and energy costs could equate to over $70 billion by 2012, outshining service revenues and providing enough financial incentive for carriers to actively support this solution.”

ABI Research will conduct a 2-hour workshop at the International Conference on Home Access Points and Femtocells, to be held in the UK,  July 3-5, 2007. The event will be held at the Sheraton Skyline Hotel near Heathrow airport in London.

The workshop, part of the Business/Marketing Track, will take place on Thursday July 5 from 2:15 to 4:15 pm, and will explore critical areas of interest for the development of femtocell markets: key considerations when building business models; how to maximize return from femtocells; exploring trends and identifying opportunities; barriers and challenges to market growth, and finally, competition and risk. For more information, please visit: http://www.avrenevents.com/femto2007/venue.htm.

ABI Research’s recent study of the global femtocell market, “Femtocell Market Challenges and Opportunities:
Cellular-Based Fixed Mobile Convergence for Consumers, SMEs and Enterprises” also found that a third of consumers would be willing to spend a considerable sum on an upfront purchase of a femtocell just for the better in-home coverage it provides. “This may contradict some of today’s vociferous pressure from carriers on price erosion as a primary concern,” notes Carlaw, “and may suggest there is room in the mix for a hybrid business model that incorporates up-front purchases with subscription fees.”

The report is the centerpiece of ABI Research’s new subscription Femtocells Research Service which also contains Research Briefs, Market Data, the ABI Femtocell Vendor Matrix, ABI Insights, and analyst inquiry support.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services, and market reports in broadband and multimedia, RFID and M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information, visit www.abiresearch.com, or call +1.516.624.2500.