|
|
 |
|
In the ongoing debates at the RAN level, one concern is regarding the benefits and drawbacks of using larger or smaller cells. Macro cells provide a higher range and can integrate backhaul capabilities, thus reducing the total cost of ownership. On the other hand, as traffic grows macro cells have the disadvantage of not being able to serve subscribers at the edge. Everyone agrees that cell sites are becoming smaller and closer to end-users. From WiFi to femto and pico cells, network architecture is more widely distributed and more complex to handle, which is why another operator trend is to outsource the management of their evolving networks. Where new emerging technologies were promised the potential to become serious competitors, when the dust comes down new models of complementary use emerge to deal with network congestion. WiFI is now increasingly being used by 3G operators to offload data traffic, and WiMAX could be the next alternative. Of course, femotcells are finally being deployed in real environments to offload the increasing amount of new data traffic. At 3G Americas analyst's conference last week, 3G-3.5G data subscriber growth was said to be increasing by about 14 million per month. AT&T, which has been most directly impacted by heavy data usage on the iPhone, is spending US$18 billion on capex for network upgrades, but is increasingly relying on offloading traffic to WiFi. With data traffic reaching saturation, the large operators cannot depend only on macro deployments to deliver bandwidth to their subscribers. AT&T began selling a 3G femtocell called the MicroCell, which contains a GPS chip that can be used to verify its location during setup. Security features prevent the device from being accessed by unauthorized devices. AT&T has also created an online portal for MicroCell customers to set up, activate, and monitor their device. AT&T is selling the device for US$150, and users can obtain a US$100 rebate if they sign up for a monthly US$20 plan that offers unlimited calling for subscribers within the femtocell's range. But the pricing is not permanent, since AT&T characterized the offering as a trial period within which it will study the pricing structure. Hence, pricing may be different once AT&T sells the MicroCell nationwide. AT&T has good reason to aggressively offer a 3G femtocell that offloads data traffic from its wireless network. But do subscribers have a good reason to go with this option? What is the femtocell for the user but an additional device to add at home to extend coverage? Should not service providers pass on some of the savings from backhauling traffic back to those early adopters? Subscribers trying to get home coverage will likely account for a sizable portion of the market, but femtocells could also help materialize the long awaited fixed-mobile convergence. Enjoy! Adlane Fellah For more information, contact the author at afellah@maravedis-bwa.com |
|
