BT Wholesale

INDUSTRY NEWS


27 May 2008

Femtocells 'open opportunities for semiconductor vendors'


As well as opening up the possibility of new mobile services for carriers, femtocells will also provide semiconductor vendors with a lucrative opportunity, ABI Research has claimed.

According to the analyst, the femtocell semiconductor market will increase from $72 million (£36.4 million) in 2008 to over $1.8 billion (£911 million) in 2013, displaying an annual compound growth rate of 300 per cent during the period.

ABI Research went so far as to claim that the promise associated with femtocells –mobile base stations that allow for the in-building delivery of mobile services via DSL – is attracting more and more silicon vendors into the market, including some of the largest players.

Stuart Carlaw, vice president at the research company, warned that semiconductor vendors should approach with caution, however, as they will be required to invest huge amounts into the development of optimised silicon for femtocells in order to make up for future price declines.

"Although there’s no doubt about the significant potential of this market, it should be addressed with great wariness," he said.

Earlier in May, the femtocell community decided to follow a single standard for the interface between femtocell components, in an effort to ensure that the technology is compatible with different types of networks.

The Femto Forum said that mobile carriers had been calling for a single standard amid fears that the promising technology would otherwise become fractured. <br/>

© 2006 Adfero Ltd.

MORE INDUSTRY NEWS