The Ericsson Femto Cell Solution enables mobile operators to enter the home segment, which has been dominated by fixed-line networks and recently attacked by both cable operators and internet players.
 

The solution includes a home access point that is the world's smallest GSM radio base station, measuring just 3cm by 5cm. The home access point is compatible with the world's 2 billion GSM and WCDMA phones and also includes Wi-Fi and ADSL.
 

Femto Cell's home access point is connected to the consumer's existing broadband and power cables. The subscriber's mobile phone will switch to the indoor radio base station automatically as he or she walks through the door. The end user does not need to do any configuration or installation.
 

Anneli Oscarson, Product Manager for the Ericsson Femto Cell Solution, says: "This is a major technological breakthrough. Utilizing the innovation and expertise of Ericsson, we have engineered the Ericsson mobile terminal chipset and put it into a box together with software technology that makes it plug-and-play. We've created not only the world's smallest base station, but the only one that works with all handsets." 
 

The Ericsson Femto Cell Solution is the first product Ericsson has developed for the consumer market since the mobile phone. It allows the mobile operator to strengthen its relationship with subscribers and provides an incentive for all users in a household to have the same mobile operator so they can get the home-area tariff and dedicated services.
 

"We are providing operators with an opportunity to introduce this product to their customers," Oscarson says. "They can offer it as a bundle to the whole family, reducing churn and increasing income. It helps them compete on the fixed-access market, offering competitive, innovative and secure services to their customers."
 

Operators can further increase business opportunities by bundling the Ericsson Femto Cell Solution with DSL.
 

"We are in discussions with some operators who want to go further and are even looking at combining with triple play, IPTV or gaming. There are many exciting possibilities," Oscarson says.
 

"For the operator, the Femto is a significant step towards convergence, combining mobile and internet usage. It has been designed with the end consumer in mind, helping them live the dream of a converged lifestyle with the low-cost opportunities. From a business perspective, it is a practical opportunity for mobile operators."
 

The Ericsson Femto Cell Solution, which is now available, is being presented at the Mobile Asia Congress in Macau this month.