Femtocell profits a waiting game

A new report from ABI Research says carriers need to keep long-term considerations in mind when formulating their femtocell strategies, because femtocell solutions probably won’t generate profits until three or more years after services are launched.
“Our studies found that the margins carriers would expect to receive from backhaul [operating expense] savings and subscription revenues alone provide little incentive to adopt this technology,” said Stuart Carlaw, research director at ABI. “It is imperative that carriers look to new value-added revenue streams, subscriber capture from other competitors, and innovative service offerings in order to make money out this play. Voice alone will not be a long term winner.”