Softbank Launches Free Femtocells and ADSL

As I mentioned they would a little while ago, SoftBank began accepting orders for free femtocells this week. This in itself is a ground-breaking industry first. The operator, however, has gone one better by providing free ADSL connections too.

Free really does change everything, especially the consumer proposition. Instead of selling an accessory to fix coverage problems (attractive only to a minority), here is a premium experience indoors for all, an integral part of the operator’s brand promise.

While many people expected femtocells to be eventually offered for free, the move to offer an ADSL connection as well is unprecedented. This offer has shaken up the business case for femtocells and will be sure to accelerate their adoption.

Ubiquisys Femtocell Technology Map

This is the Ubi femtocell technology map that has been doing the rounds over the past week or so (thanks Zahid Ghadialy).

Although the tube map format was just a bit of fun, it does neatly illustrate the common sense behind the Ubiquisys Femto-Engine system.

Ubiquisys is the only femtocell company where the Software (see the blue Technology line and the orange Applications line on the map) is separated from the Hardware (the pink Device Innovation line).

• It means we focus on software, the elements such as continuous self-organisation that make our femtocells unique, and which encapsulate our extensive deployment experience. That’s how we make a better femtocell.

• It means we can share our hardware expertise, providing manufacturing partners with a fast track to femtocell production, but without the associated investment in complex femto software, apps platform and operator specific features.  That leaves manufacturers free to innovate, developing new femto-enabled products and driving cost-optimisation.

The results can be seen in the green Product line on the map, with an unrivalled range of femtocell products and prices that start below $100.

(Guest post by Keith Day at Ubiquisys.)

How will free femtocells affect global femto forecasts?

The $100 wholesale price for femtocells has long been described as an industry milestone, because it enables operators to offer femtocells for free with existing services.  That’s why we took the unusual step of going public as soon as we had won our first contracts at sub-$100.

But what effect will this have on the adoption of femtocells?  All of the current market forecasts are based on a wholesale price of $150-$250, a price point that requires operators to charge for femtocells.  A free femtocell offer that provides a premium mobile experience will be compelling to many times more consumers.  Will this accelerate and amplify the femtocell adoption curve?

I raise the question because free femtocells are already beginning to appear (see my last post SoftBank offers free femtocells).