A Fermented Business Model
In the last post I set the context for some of the operational challenges of femto, but that situation may not be as bleak given a little time for appropriate industry standards and practices to solidify…. And assuming that the business model becomes decoupled.
Before going forward, lets review some of the current environment of a wireless service provider. In the U.S. they have just begun a brutal war based on flat rate unlimited service*. Next, it turns out that unlimited is actually limited. Small print forbids use of VoIP, streaming and other services that might degrade (or compete with) their network.
How is this relevant to femto? First, unlimited minutes were to be the principle draw. Femto tariffs, typically a fixed price for unlimited service while using the femto cell, were supposed to be more attractive compared to regular rates. However, for many the new fixed rate plans eliminate the femto incentive. Next there is that asterisk. The same wireless operator that shuns or manages certain application usage on their network now expects the fixed line provider to accept the femto’s traffic on its broadband network. The same operator who probably just lost a fixed line subscriber. Expect femto to become the asterisk for broadband, assuming that you can get broadband. What I have seen from spectrum planning, the same coverage gaps that femto is best suited for are the same sites that suffer lack of broadband: multi-dwelling facilities and high rises (mostly from lack of open access rights), rural, and economically disadvantaged areas. Bleak? Yes, but possible solution are ahead in the next post.
