Femtocells, small cells, pico cells, metro cells…whatever you call them, we write about them. We’ve been contributing to a key femtocell blog for over two years, and probably know more about femtocells than most. We think they are a pretty impressive technology that will be fundamental to how the mobile network is constructed in the future. And just to prove that we eat our own dogfood, as they say, I use a Vodafone Sure Signal femtocell at home, and it really does give me five bar coverage. When it’s unplugged from the router, my signal quality drops off a cliff.
Just as a taster of our femto market commentary, here’s a piece that my colleague Paul Golden recently wrote for Wilson Street….
A combination of more data-hungry devices and higher service expectations on the part of users has created a ‘perfect storm’ for mobile broadband providers, who are likely to look to small cells to address some of their network coverage and congestion issues.
According to the International Telecommunication Union, there were 872 million active mobile broadband subscriptions last year. Based on growth rates for the previous 12 months it is reasonable to assume that there are now more than one billion users worldwide.
The pressure this growth is placing on networks has been well documented. A survey conducted by YouGov found that 77% of mobile broadband users in the UK encountered some form of quality of experience issue over the last 12 months. More than half complained of slow speeds and 42% reported connection problems.
The survey suggests that the availability of time sensitive, data-heavy applications and services has created a generation of more demanding users, but this does not mean that coverage and broadband speeds are not a legitimate cause for concern. UK regulator Ofcom’s research into mobile broadband speeds published earlier this year found that network availability and performance varied significantly – even within small geographic areas.
Access problems everywhere
Access speeds are a concern in many other parts of the world. According to Pyramid Research, wireless networks in the US are already operating at 80% capacity and a new report by Strategy Analytics has found that mobile broadband speeds can have a major impact on consumers’ choice of service provider. Three quarters of smartphone users surveyed were attracted by faster browsing and download speeds according to the firm, which examined the advertising techniques and services adopted by network operators in the US and Europe and predicted that pricing innovations would accelerate as more LTE products become available.
YouGov recommends that mobile operators compete on service quality of experience to improve customer satisfaction and reduce churn. Yet one of the UK’s largest mobile broadband operators has claimed that without acquiring additional spectrum it could run out of network capacity in urban areas as early as next year.
An obvious solution is wider use of small cells. There is evidence that a more flexible approach to network development incorporating femtocells could ease congestion in towns and cities. A number of reports have identified the metro market as one of the driving factors in femtocell growth as operators use femtocells to provide fill-in coverage for congested metro areas and Ofcom has referred to the need for mobile networks to be designed intelligently, which is expected to translate into greater use of small cells to meet demand in specific areas.
Operators will have to work hard to manage customer expectations if the findings of speed tests conducted by broadband comparison service Broadband Genie are anything to go by. The data indicates that advances in download speeds have slowed, with most service providers struggling to reach 2Mb and speeds rising little over the last 12 months.
The UK government has pledged to improve access to mobile services by committing £150 million to install new phone masts in areas of poor or limited coverage. The procurement process will commence in 2012 and is planned to bring access to 99% of the UK. In the meantime, concerns remain over the roll out of LTE services. Spectrum auctions are scheduled to take place in mid-2012, but speculation is rife that operators will challenge the process and regulator Ofcom is likely to allow operators five years to reach 95% geographical coverage.
This article, written by Futurity writer Paul Golden, first appeared on Wilson Street, a femtocell blog from Alcatel-Lucent. To read more about femtocells, visit www.wilson-street.com