Skip to main content

FMC and Femtocell Reaches Anticlimax

The hype surrounding fixed-mobile convergence (FMC) and femtocells continues to grow, but it is likely that neither technology will live up to expectations, according to the latest study by In-Stat.

There is much interest in fixed-mobile service (FMS) enabled by femtocells and FMC among consumers, with the promise of more convenience and lower costs, the high-tech market research firm says.

Femtocells are micro-base stations designed for home use that support mobile connectivity over the broadband facility. FMC uses Wi-Fi-enabled routers and handsets to carry mobile calls over a broadband connection.

"In-Stat believes that by 2010 the FMC and femtocell market segments will evolve to form a new fully-converged services market segment," says Keith Nissen, In-Stat analyst.

Current unlicensed mobile access (UMA) and IMS-based FMC services, which emphasize cheap phone calling, will be marginalized. Likewise, operators that deploy femtocell-based services using the same cut-rate calling value proposition will be short-lived. Converged services that emulate the home telecommunications experience will emerge because they will be more highly-valued by consumers than are individual services.

The research provides detailed analysis of the FMC, FMS, and femtocell markets. It presents forecasts for dual-mode cellular Wi-Fi handsets, UMA and IMS FMC subscribers, as well as subscribers to femtocell-based services. In addition, the report presents primary research findings that confirm strong consumer interest in FMC and FMS services. The evolution of FMC and femtocell services and the emergence of fully–converged services are examined.

In-Stat's market study found the following:

- By 2011, over 53 million session initiated protocol (SIP)-enabled mobile handsets will ship.

- New UMA subscriber additions will peak in 2009 at approximately 3.5 million.

- By 2011, over 100 million consumers will have access to femtocell-enabled gateways.

Popular posts from this blog

Semiconductor Economics Rewritten by AI Demand

Semiconductor forecasts rarely move enough to reshape an enterprise boardroom budget conversation. Omdia's latest worldwide market study findings does exactly that. The research firm has raised its 2026 global semiconductor revenue forecast to 94.1 percent year-over-year growth, an increase driven almost entirely by memory pricing tied to artificial intelligence infrastructure. For technology executives, the number itself matters less than what sits underneath it. Applied-AI demand has now outrun the industry's capacity to produce and package the chips it needs, and Omdia expects that imbalance to persist through early 2027. The Semiconductor Forecast Revision Memory integrated circuits, DRAM and NAND combined, are now projected to account for more than 50 percent of total semiconductor revenue in 2026. That threshold has rarely been crossed in the industry's history. It marks a structural shift in where chip economics get decided. Logic used to set the pace of the industr...