Femtocells and picocells offer enhanced indoor coverage. Deployments will rise in step with the rise of LTE. Users benefit from an enhanced mobile broadband experience, esp. in 3G and 4G environments. Operators save on opex and capex, while growing data revenues. Operators may be forced to fully subsidise femtocells for the residential market, but usage may be billed and drive revenues. Picocells, aimed at SME companies, could be an easier sell. There are alternatives, but femtocells could be an essential part of 3G and 4G networks. In this brief we explain the main benefits of femtocells and picocells to both operators and customers. We also discuss business model choices and briefly point to alternative technologies.
