Femtocells in the Consumer Market: business case and marketing plan

It' s now time for mobile operators to define viable business cases for 3G indoor base stations, commonly referred to as femtocells, and to develop compelling service propositions and marketing plans that make those business cases a reality. There is increasing excitement in the mobile industry about the potential for femtocells. Equipment vendors and mobile network operators are busily developing and evaluating products and considering how to integrate large numbers (potentially millions) of femtocells into existing mobile networks. However, the success of femtocells is not guaranteed, and the cost of failure could be very high. Much early attention has been focused on the technical challenges of femtocells, but mobile operators should concentrate on making viable business cases and delivering successful consumer propositions.

This report shows operators how they can profitably derive revenue from femtocells by defining compelling consumer propositions with which to target key segments. It considers both voice telephony and a number of non-voice services that will be critical to a viable business case. The report quantifies the business case for operators deploying femtocells for a range of customer types and service mixes in order to pinpoint the most attractive opportunities. The report also compares the business case for femtocells with those for other options, including network sharing, UMA services, home-zone tariffs and traditional bundles, and defines exactly where, how and when femtocells should be deployed to achieve the best return.

Femtocells in the Consumer Market: business case and marketing plan answers your key questions:

• What are the major elements of the business case for femtocells, in terms of revenue, cost savings and investment requirements?
• Which market segments may be interested in femtocells (or the services they enable), and which of these are the most attractive for mobile network operators?
• Is there a business case for voice-telephony services alone and, if so, in what circumstances? What approaches should mobile network operators take with voice services?
• What is the financial payback for a range of customer segments and service mixes? How can you achieve payback in less than six months?
• To what extent can non-voice services improve the business case for femtocells? Which non-voice services will really make the biggest difference?
• What is the most compelling service offering for consumers?
• How could femtocells allow mobile network operators to make dramatic reductions in investment in conventional 3G macrocellular networks and dedicated broadcasting networks (such as DVB-H)? How much could mobile network operators save, and what difference will this make to the business case for femtocells?
• How does the business case for femtocells compare with those for other options, such as home-zone tariffs, bundled services, dual-mode handset services and network sharing?

• Mobile network operators: senior executives and technology and marketing managers, in order to understand the business case for femtocells and the market propositions that will be needed to drive their take-up
• Indoor base station vendors: senior executives and product and marketing managers, in order to strengthen the business case for mobile operators and to relieve price pressure on femtocell products
• Investors and analysts: in order to assess the market potential for femtocells and the actions required to make them succeed.