AT&T Tests Femtocell: Cell Phone over Broadband

AT&T is testing a system that uses home broadband to solve poor home cellphone reception. If successful, it would lead to the biggest audience yet for the technology, though consumers may not be impressed with the proposed pricing scheme.

The technology involves a device known as a "femtocell," which AT&T is marketing under the name MicroCell. It's basically a miniature cellphone relay station that plugs into a broadband router. Cellphones within range (a total area of up to 5000 square feet) can then automatically switch to route calls through the broadband connection rather than rely on the wireless network. It's aimed at customers who are in marginal reception areas and are fed up with having to walk around their home to find a spot to make or receive calls.

Freeloaders Kept At Bay

Security measures mean that while the user can register up to 10 phones with the femtocell (four of which can make calls at once), neighbors cannot tap into the connection without permission. Previous tests in the U.S. and Europe have found that using the service generally doesn't affect the download speeds available to computers plugged into the same broadband connection.

Out of Range Does Not Work in Reverse

If a user is making a call through the femtocell and moves out of range, their call will automatically switch to routing through the nearest wireless phone network. However, this switching doesn't work in reverse. (Source: pcworld.com)

As well as benefiting consumers, the technology has a major advantage for cellphone networks: when users of the femtocell make calls from home (comprising a fair chunk of cellphone use), they don't make any demands on the wireless phone network.

Femtocell Cost Could be a Problem

However, the pricing may be off-putting to some users. Those involved in the trial in Charlotte, North Carolina can choose between simply paying $150 for the device, or paying $50 to buy it and then an extra $20 monthly fee to cover all domestic calls made through the femtocell (which means they won't count towards any monthly minute allowances on existing voice plans).

That's a tough sell; even if consumers think that price is worth paying to get better reception, they may resent the idea of having to pay anything to effectively compensate for inadequate network coverage. (Source: zdnet.com)