March 22, 2007

Cell Block

By Jim Barthold

There's a new device floating around the broadband mobile wireless space - if mobile broadband is not an oxymoron - that will impact cable, home networking and the emerging fixed-mobile convergence (FMC). Femtocells, small in-building base stations that operate cell phone frequencies but use broadband DSL or cable connections back over the network, deliver a bit of FMC because callers can continue to use their cell phones with improved reception and offload minutes by using a wired network infrastructure.

ABI Research, which tracks these kinds of things, has predicted that there will be 102 million femtocell product users on 32 million access points by 2011.

"The femtocell gives you an access point that talks to your cell phone and doesn't require a special cell phone, which is a big advantage, but then it connects to the normal carrier's network, not over their radio channels to cell sites, but rather over a broadband connection going through an IP network," said Jim Grams, vice president of marketing for Azaire Networks. "This is all FMC in the sense that it's converging two different networks."

Since Azaire builds security and packet gateway technology for the mobile carrier infrastructure and is just stepping into the CDMA space, Grams is both excited and concerned about femtocells, which are first coming into play with third generation GSM (Global System for Mobile communications) infrastructure.

"We've had inquires from a couple of the major CDMA carriers around the world that they are looking at some hybrid technologies more based around the femtocell concept," Grams said.

Femtocells will inevitably impact home networks and should be a boon to mobile providers looking to hang onto subscribers. The impact on cable is less clear, especially in competition with wireline telcos getting ready for some fourplay. After all, if you're a phone company with a wireless brand - think AT&T and Verizon - you have to love the femtocell. If you're a cable operator, even with an alliance with Sprint Nextel, you might have reason to temper that affection.

- Jim Barthold