A femtocell is a very small cellular tower for the home. I’ve been watching and waiting for affordable femtocell technology for some time. Magic Jack's offering requires a broadband connection and a GSM-compatible phone. The consumer's smartphone should also be internet WiFi capable, and they should also have at least in-home WiFi-G wireless internet.
http://wap.cbsnews.com/site?sid=cbsnews&pid=sections.detail&catId=TOP&storyId=6071300
“U.S. carriers have been selling and experimenting with devices that act similarly to the wireless magicJack. They're called "femtocells." Like the magicJack, they use the carrier's licensed spectrum to connect to a phone, then route the calls over a home broadband connection. They improve coverage inside the home and offload capacity from the carrier's towers.”
So, users of phones with GSM for voice may now have improved signal strength inside their home, and free daytime cellular “minutes” when their GSM phone is routed thru the MagicJack Femtocell device. However, experience and experimentation is needed to show what this means for data. Of course, if the user’s GSM device is a smartphone with WiFi capability, in-home WiFi will take care of the internet browsing portion.
There will probably be legal challenges for YMax/MagicJack, in that the new device uses, without permission, radio frequencies for which cellular carriers have paid billions of dollars for exclusive licenses. YMax says the device is legal because wireless spectrum licenses don't extend into the home. OK, that’s home users. What about business offices? We don’t know yet.
IMHO this is a ‘disruptive’ new technology which means opportunity for others to capitalize on in 2010+ At the very least, competition from YMax/MagicJack should alter the business models of the cellular carriers to some extent. Meanwhile, I’m planning that my next Smartphone be GSM-compatible world phone (not just a Verizon CDMA/TDMA type) – just in case.
Thought you’d be interested.
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