Motorola Israel general manager Elisha Yanay told "Globes" that femtocell technology could kill off the telephony companies. He said that the product, which is a small base station or wireless access point in subscribers' homes, provides clearer and better access for mobile telephones.
A femtocell uses a high-speed Internet connection, instead of outdoor cellular towers, to send a call from a handset to the operator's base station, which directs it to the destination.
Yanai claims that the femtocell will enable cellular operators to provide services while needing only one thing from telephony companies: either an ADSL line or cable modem. He notes that a high proportion of cellular calls are made from within homes, even though subscribers have the option of using a regular landline telephone. If cellular operators add reduced rates for calls made from homes, they will be able to put pressure on landline telephony companies.
Femtocell technology also greatly reduces companies' spending on transmission because transmission from the home will be over an ADSL line or cable, reducing the need for antennas.
Published by Globes [online], Israel business news - www.globes-online.com - on February 13, 2008
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