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Ken Kolderup
Vice President, General Manager - Infrastructure Business Unit

As vice president and general manager of the Infrastructure Business Unit of Kineto Wireless, Ken Kolderup is responsible for product marketing, branding and corporate communications. Mr. Kolderup brings more than 20 years of marketing and product management experience in the telecommunications industry to Kineto Wireless. Prior to joining Kineto, he led marketing for Jetstream Communications, the leading supplier of voice over broadband equipment to incumbent and competitive local exchange carriers. view full bio
Femtocells vs. Dual-Mode Handsets
I often hear people positioning femtocells vs. dual-mode handsets. Are they really two ways to deliver the same service? Are the two in conflict with each other?
No. Femtocells and dual-mode handsets are both important technologies to mobile operators, but the service opportunities are different.

Femtocells will be deployed to improve performance (coverage) of mobile services, specifically 3G, in the home or small office. Subscriber acquisition costs for mobile operators is between $300 and $400, so subsidizing a $150-200 femtocell access point to provide subscribers better coverage and reduce churn is an easy decision.

Dual-mode handsets will be deployed for 'cheap voice' to drive fixed-mobile substitution. Wi-Fi and IP are extremely low-cost technologies, and dual-mode handsets enable the operator benefit from the price and performance. While undoubtedly there will be some overlap, the primary service drivers for each technology are clear.
What are the advantages and disadvantages of dual-mode handsets and femtocells for a fixed-mobile substitution service offer?
In comparing dual-mode handsets and femtocells for a fixed-mobile substitution service offer, there are three criteria to evaluation: the economics, service usage, and long term strategy.

Economics: Generally this comes down to subsidies. For femtocells, the operator is subsidizing a radio in the home at a cost of roughly $200 today. For a dual-mode handset, the incremental device subsidy for Wi-Fi is roughly $20.

Service Usage: For femtocells, the subscriber receives the "home zone" calling benefit when connected to the femtocell in the home. Unfortunately, there is not likely to be a femtocell in the office or at the local Starbucks or coffee shop. With dual-mode handsets, the zone can be extended to any Wi-Fi (home, office, public hotspot) and can actually include Wi-Fi access points around the world. A licensed radio in another country would not work.

Evolution: A femtocell will be a single radio technology, UMTS, WCDMA. Yet it is well understood that RAN technology must evolve to HSxPA and new LTE technologies. But the femtocell in the home is locked into a single radio technology. While Wi-Fi is also a single radio technology, the RAN can evolve totally independently.
So, when should an operator consider deploying a femtocell service, and when should they consider deploying a dual-mode handset service?
Dual-mode handsets will be deployed for fixed-mobile substitution in the home/office and provides for cheap voice.

Femtocells will be deployed for improved 3G coverage. They will be used to reduce churn and improve customer satisfaction.
So, is it possible that the same operator may deploy both femtocell *and* dual-mode handset service?
Absolutely. Based on service objectives, operators may install a UNC to support a femtocell deployment to reduce churn and improve 3G coverage. In the future, that operator may wish to add a dual-mode handset service. A key advantage for UMA is that the same UNC supports both applications. Therefore, the investment in the UMA controller is protected.