Femtocells: analysing the business case

Key messages

Introduction

• Different business models for femtocells
• Components of the femtocell business case
• References

Component 1: femtocell costs

Component 2: macrocell network off-load cost savings

• Voice and data usage in the home
• Cost modelling
• Understanding the impact of service usage and 3G market conditions
• Understanding the impacts of deploying femtocells in suburban areas
• Understanding the impacts of targeting heavy users
• Understanding the impacts of promoting family offerings

Component 3: femtocell consumer propositions

• The starting point is voice
• Data services

• Figure 1: Overview of business model options for femtocells
• Figure 2: Contrasting femtocell business case scenarios
• Table 1: Summary of macrocell network assumptions
• Table 2: Macro-network parameters (macrocell network cost savings model)
• Figure 3: Annual macrocell network cost savings: different scenarios for network usage and 3G market conditions (per customer)
• Figure 4: Annual macrocell network cost savings for different scenarios of network usage and 3G market conditions (per femtocell)
• Table 3: Parameters for urban/suburban macrocell network cost savings model
• Figure 5: Comparison of annual macrocell network cost savings for urban and suburban environments
• Table 4: Parameters for usage level macrocell network cost savings model
• Figure 6: Macro-network cost savings for different service usage levels (per femtocell)
• Figure 7: Cost saving gains by targeting heavy users (% increase of macrocell network cost savings)
• Table 5: Femtocell family offering parameters
• Figure 8: Macro-network cost savings by average users (per femtocell)