Asia-Pacific Femtocell Revenue “Modest”, Enterprise In-Building Wireless Systems to Blossom in Next Five Years

• Posted: Wednesday, March 12, 2008
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• Author: pradhana
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• Filed under: Femtocell, Market Survey, Wireless Service

A new study from ABI Research indicates that femtocells will generate revenue of nearly $5 million in 2008 from device shipments in the Asia-Pacific region.

According to research director Stuart Carlaw, “While $5 million is a relatively modest sum in global terms, it is important to remember that it is generated from a market that barely exists yet, and as such it represents quite satisfactory early growth.”

Regulatory complications may play a roll in femtocells’ regional rollouts too. “Softbank still needs to get regulatory approval before it can roll out femtocell service commercially. Hence, its timeline for mid-2008 may slip,” notes research analyst, Hwai Lin Khor.

The South Korean government has yet to finalize its fixed-mobile convergence policy, and ABI Research believes commercial femtocell services will not be introduced in the country until 2009. Femtocell prospects in India and China are heavily dependent on those countries’ 3G license developments.

Hwai Lin Khor continues, “In-building wireless for enterprise markets in the Asia-Pacific region was approximately a $1.5 billion industry in 2007, with the majority of the earnings coming from Distributed Antenna System (DAS) deployments.” Currently, most IBW deployments in the region are of passive DAS and repeater-based solutions due to their lower cost.

However, ABI Research expects more fiber optic-based active DAS deployments in the next five years, due to migration of customers to 3G technologies on 2100 MHz spectrum and an increase in the number of buildings larger than 100,000 square feet. [ABI Research]

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