If there’s one complaint consumers have about their mobile phones, it’s poor reception, especially indoors. Many consumers believe there’s little they can do about this and the situation may explain why only about 23% of households have dropped their landlines completely. Of course, the majority of consumers who live in mobile-only households exhibit behavior linked to age or household income demographics.
But would more consumers move to a strictly mobile-phone lifestyle if the in-home reception improved? Findings by ABI Insights indicate the answer is yes. And phone carriers have a piece of equipment to do the trick: the femtocell — a device that acts as a mini-base station to improve coverage and indoor reception. ABI Insights research indicates the following consumer interest in femtocoells:
- Very or extremely interested: 25%
- Somewhat interested: 31%
ABI Insights analysts reported that “operators are losing out on a significant portion of the market due to their lack of initiative in marketing femtocells or educating consumers on a mass-market scale.” The findings also suggest that younger consumers will be the first adopters of this technology. As competition heats up in the mobile phone carrier market and more consumers begin using smart phones, look for companies to begin marketing femtocell technology to improve their positions.[Sources: CDC releases, 2009; ABI Research release, 12.08.09]