Femtocell Bounce in 2H 2012 Suggests Market Could be Turning a Corner, Says ABI Research

  Femtocell Bounce in 2H 2012 Suggests Market Could be Turning a Corner, Says
  ABI Research

Business Wire

LONDON -- January 7, 2013

While the femtocell market struggled in the first half of 2012, the market has
bounced back in the second half of the year. ABI Research’s latest femtocell
forecast update suggests that 2012 ended up with shipments reaching slightly
above 2 million units. The shipments in the second half more than doubled from
the first half, making up for some of the lost momentum.

The forecast covers the enterprise and consumer femtocells market, with
enterprise femtocells making up one-third of the total shipments. On the other
hand, revenues from enterprise femtocells made up to two-thirds of the total
revenue for femtocell access points.

Airvana, Alcatel-Lucent, and NEC/Ubiquisys remained the top vendors in terms
of shipments making up 78% of the total shipments in 2012.

“The appetite for femtocells continues to persist as suggested by this second
half bounce, which can be attributed largely to inventory levels needing a
refresh, but also due to renewals of contracts driven by newer versions of
access points. This is also evident in the continued growth in contracts which
have reached a total of 130 globally, as per our estimates,” says Aditya Kaul,
practice director, mobile networks.

Kaul adds, “The lack of operator willingness to use femtocells as a
competitive network quality differentiator, rather than a defensive churn
reduction tool, continues to plague the market. Nevertheless, it is
encouraging to see demand back up, with new markets such as Latin America and
Russia lighting up. Competitive factors in certain markets are causing domino
effects with one operator leading and the others following. This is enough to
keep the momentum going forward, with new business models like femtocells as a
service, adding to that momentum and bringing lower tier operators into the
fold. Overall the market looks like it might be turning a corner.”

These findings are part of ABI Research’s Enterprise and Consumer Femtocells
(http://www.abiresearch.com/research/service/enterprise-and-consumer-femtocells/)
and Mobile Enterprise Technologies
(http://www.abiresearch.com/research/service/mobile-enterprise-technologies/)
Research Services.

ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
thousands of decision makers through 70+ research and advisory services. Est.
1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

Contact:

ABI Research
Christine Gallen, +44-203-326-0142
pr@abiresearch.com