Thursday, January 29, 2009

Make the customer pay to expand the network - cellphone home 'femtocells'

A Good Deal for Carriers, but Consumers?
By Roy Furchgott NYT Jan 26'09

http://gadgetwise.blogs.nytimes.com/2009/01/26/verizon-has-announced-that-wil/?emc=eta1

Interesting idea, these so-called femtocells: making customers pay for expansion of the cellular network. It's an intriguing business model, where disgruntled customeers not happy with the ir cellphone coverage can pay to have a small cell transceiver installed in their home. I think the trouble with growing a cellphone business is that the hardware set-up is so expensive and has to be very broad-based before you can attract any customers.

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