Femtocell Business Models

Exploring Effective Go-to-Market Strategies

At a time when the biggest question surrounding femtocells is, “What is the best go-to-market strategy?” this study provides a credible third-party perspective on potential revenue streams and costs. The report includes a dynamic, user definable, Excel-based user model that incorporates 28 different input variables, from the breakdown of costs to uptake and user traffic. It profiles an exhaustive list of output data on costs, revenues and provides 144 different margin analyses accounting for every potential outcome derived from the mix of variables.

What Questions Does This Report Answer?

  • How does femtocell ASP affect ROI?
  • How long before a femtocell introduction will POP be met?
  • What revenues can be accrued from value added services and what impact does this have on the business case?
  • What are the key considerations for launching a femtocell solution in terms of pitfalls and opportunities?
  • What is the optimum blend of characteristics to ensure consumer uptake and revenue accrual?

Who Needs This Report?

  • Wireless carriers
  • Femtocell vendors
  • Fixed carriers
  • System integrators
  • Network management vendors
  • Silicon vendors

Table of Contents


Section 1.
Introduction, How the Model Works, and User Instructions
1.1. How the Model Works
1.1.1. Input Data
1.1.2. Cost Analysis
1.1.3. Revenue Analysis
1.1.4. OPEX Savings
1.1.5. Consolidated Results

Section 2.
Femtocell Costs
2.1. Input Data Discussion
2.2. Output Discussion

Section 3.
Femtocell Revenue Opportunities
3.1. Input Data Discussion
3.2. Output Discussion

Section 4.
Femtocell OPEX Savings
4.1. Input Data Discussion
4.2. Output Discussion

Section 5.
The Unquantifiable Aspects
5.1. Macro Network Quality
5.2. Churn
5.3. Contract Extension
5.4. CAPEX Delay
5.5. Open Island or Semi-Open Island Models
5.6. Broadband Cost

Section 6.
A Consolidated Picture

Section 7.
Appendix A: New Product Diffusion Model
7.1. The New Product Diffusion Model
7.2. Deriving the Growth Coefficients
7.3. The New Product Conundrum
7.4. Using Analogical Products as a Base-line
Sources and Methodology
Notes



Tables
  • Input Data, Number of Femtocells and Users: Moderate Uptake
  • Input Data, Number of Femtocells and Users: Aggressive Uptake
  • Input Data, Breakdown of Costs
  • Input Data, Moderate Femtocell Usage Model
  • Input Data, Aggressive Femtocell Usage Model
  • Input Data, Additional Traffic Generated by Habit Change
  • Input Data, Cost per Subscriber for Backhaul
  • Input Data, Handset Subsidy Levels
  • Input Data, Value-Added Services
  • Input Data, New Subscriber ARPU
  • Costs for Moderate Femtocell Adoption, $128 Femtocell Cost with 100% Subsidization
  • Costs for Moderate Femtocell Adoption, $128 Femtocell Cost with 80% Subsidization
  • Costs for Moderate Femtocell Adoption, $128 Femtocell Cost with 50% Subsidization
  • Costs for Moderate Femtocell Adoption, $100 Femtocell Cost with 100% Subsidization
  • Costs for Moderate Femtocell Adoption, $100 Femtocell Cost with 80% Subsidization
  • Costs for Moderate Femtocell Adoption, $100 Femtocell Cost with 50% Subsidization
  • Costs for Moderate Femtocell Adoption, $149 Femtocell Cost with 100% Subsidization
  • Costs for Moderate Femtocell Adoption, $149 Femtocell Cost with 80% Subsidization
  • Costs for Moderate Femtocell Adoption, $149 Femtocell Cost with 50% Subsidization
  • Costs for Aggressive Femtocell Adoption, $128 Femtocell Cost with 100% Subsidization
  • Costs for Aggressive Femtocell Adoption, $128 Femtocell Cost with 80% Subsidization
  • Costs for Aggressive Femtocell Adoption, $128 Femtocell Cost with 50% Subsidization
  • Costs for Aggressive Femtocell Adoption, $100 Femtocell Cost with 100% Subsidization
  • Costs for Aggressive Femtocell Adoption, $100 Femtocell Cost with 80% Subsidization
  • Costs for Aggressive Femtocell Adoption, $100 Femtocell Cost with 50% Subsidization
  • Costs for Aggressive Femtocell Adoption, $149 Femtocell Cost with 100% Subsidization
  • Costs for Aggressive Femtocell Adoption, $149 Femtocell Cost with 80% Subsidization
  • Costs for Aggressive Femtocell Adoption, $149 Femtocell Cost with 50% Subsidization
  • Revenue from Moderate Femtocell Adoption, $20 Subscription Fee per Month, All-You-Can-Eat Home Bundle
  • Revenue from Aggressive Femtocell Adoption, $20 Subscription Fee per Month, All-You-Can-Eat Home Bundle
  • Revenue from Moderate Femtocell Adoption, $30 Subscription Fee per Month, All-You-Can-Eat Home Bundle
  • Revenue from Aggressive Femtocell Adoption, $30 Subscription Fee per Month, All-You-Can-Eat Home Bundle
  • Revenue from Moderate Femtocell Adoption, $40 Subscription Fee per Month, All-You-Can-Eat Home Bundle
  • Revenue from Aggressive Femtocell Adoption, $40 Subscription Fee per Month, All-You-Can-Eat Home Bundle
  • Revenue from Moderate Femtocell Adoption, $50 Subscription Fee per Month, All-You-Can-Eat Home Bundle
  • Revenue from Aggressive Femtocell Adoption, $50 Subscription Fee per Month, All-You-Can-Eat Home Bundle
  • Backhaul OPEX Savings, Moderate Femtocell Adoption and No Traffic Growth
  • Backhaul OPEX Savings, Aggressive Femtocell Adoption and No Traffic Growth
  • Backhaul OPEX Savings, Moderate Femtocell Adoption with Traffic Growth
  • Backhaul OPEX Savings, Aggressive Femtocell Adoption with Traffic Growth
  • Results: Moderate Femtocell Adoption, $128 Femtocell, $20 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $128 Femtocell, $20 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $128 Femtocell, $30 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $128 Femtocell, $30 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $128 Femtocell, $40 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $128 Femtocell, $40 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $128 Femtocell, $50 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $128 Femtocell, $50 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $100 Femtocell, $20 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $100 Femtocell, $20 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $100 Femtocell, $30 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $100 Femtocell, $30 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $100 Femtocell, $40 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $100 Femtocell, $40 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $100 Femtocell, $50 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $100 Femtocell, $50 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $149 Femtocell, $20 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $149 Femtocell, $20 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $149 Femtocell, $30 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $149 Femtocell, $30 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $149 Femtocell, $40 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $149 Femtocell, $40 Monthly Subscription
  • Results: Moderate Femtocell Adoption, $149 Femtocell, $50 Monthly Subscription
  • Results: Aggressive Femtocell Adoption, $149 Femtocell, $50 Monthly Subscription

Charts
  • Chart 1 Breakdown of Costs

Figures
  • Diffusion Model
  • New Product Diffusion Profile (Net Adoptions)