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Femto Cell Start-Up

This is the compilation, which is based on the article Femto Cell Networks from the Telecom Services partition and the articleFemto-MVNO from the “Business Cases” partition.


Technically Femto Cell is private usage equipment, similar to Wi-Fi router, but protocols, bands and interfaces are exactly corresponding to cellular network standards, that access can be done with regular cellular modem or cellular phone. Original idea had relation to WCDMA.

Femto Cell appearing is not just new technology product, which is alternative to existing products. This is not even so innovative in fact, but just comprises parts from different telecom technologies, which are exist already.

However, this mix of existing technologies brings a lot of completely new businesses. These Businesses caused by present trend of moving to Convergent Networks and presence of Fast Internet access in each home. Additional benefit for new comers in wireless telecom is that Fento Cell technology provides low cost entrance into the Business.

As the result, mentioned properties of Femto Cell technology (new for the market, easy, cheap) and present market trends (convergence, home internet access) are allowing the following business cases:

· allowing short term and low cost trials by Mobile Operators and IT corporations

· business development by small and medium businesses (which can be near telecom and even not related to telecom – for example WEB-portals or Content Owners),

· allowing even start-ups by group of enthusiasts (start-up budged can be as low as 1-2 monthly salaries of group of 3-5 telecom engineers, for example)

Variants of Start-Up Projects

Appearing of Femto Cell has brought the opportunity of easy and low cost entrance into the telecom business.

· For example, you know the place where is seasonal increase of visitors and then lack of RF resources. Then you may develop small network of 5-10 Femto Cells, make an agreement with major operators and share profit. This business case become even more attractive if you know several places near you where high visiting seasons are different. Then you can transport your Femto Cell network from one place to another and the only thing you have to care is that there is a possibility to have Internet Access via cheap LAN or ADSL.

· Another point is you are owner of distant hotel, cruise ship or public transport. Then if there is an opportunity to have cheap access to internet and bad coverage of Mobile Operators, you have excellent opportunity to increase income on telecom services. Even if you have calculated the business case and pure profit is equal to zero, then there is anyway a reason to implement your own Femto Cell network, as you have additional competitive advantage for free!


Another branch of businesses, which are based on Femto Cell benefits, is to provide assured quality of Mobile Network connection. Idea is that when there is some meeting of hundreds and thousands people on small area, there is always problems with usage of Mobile Network services and there is always a group of people which ready to pay some extra fee and have guaranteed aceess. Just few examples

o VIP zone on sporting event or on concert. Guaranteed connection for double fare.

o Business Conference where almost all participants must have regular access to e-mail or access to news in Internet. Surely there can be combined some group of executive persons, which ready to pay extra fee for guaranteed access.

o Alternative in-building access to Mobile Network for specific sort of secure buildings, where impossible to have normal quality RF signal inside the building. These specific buildings can be Banks, Financial Corporations headquarters, some Military and Government organizations. Business then is to act as alternative operator with low cost solutions, as there are no investments in end-user equipment (regular cellular phones are used).

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