The invention and development of Femtocell technology has had both negative and positive impact on business. Femtocells are greatly preferred in business environments due to the benefits they offer to the users. One positive impact of the technology on business is that, it has led to the establishment of new companies. According to Nicholas (Nicholas, 2004), the increase in demand for mobile phone service has encouraged new companies to come up in order to meet the high demand. For instance, in 2004, several companies had begun investigating Femtocells.
This was followed by registration of companies that focused on the technology a good example is the 3 Way Networks that is currently referred to as 3Way Networks. The companies made the idea widely known and this led to the establishment of suppliers such as Radio frame Networks and Samsung. The idea of femtocell by early 2007 had several companies demonstrate systems at events such as the 3GSM Conference in February. In addition, operators announced trials. The establishment of companies has promoted the deployment of femtocell worldwide, and this has been supported by the Femtoforum Trade Organization.
Apart from the system manufacturers, semiconductor companies have also been established. The establishment of companies has led to the development and growth of the business industry, an opinion supported by Shelly et al (Shelly et al, 1999). The invention of Femtocell apart from encouraging the establishment of companies has provided and continues to provide new business opportunities to individuals, companies, or corporations that would like to invest in the industry.
Femtocells are some of the most existing products that have emerged in the communication industry. The products have attracted a lot of attention and because they are considered to be a product that will be able to deliver broadband communication in a manner that has not been seen before, Femtocells have provided new business opportunities to individuals or corporations. Companies that aim at improving cell-phone coverage in the communication industry while maximizing the financial returns are now using Femtocells.
For example, Motorola and Google are some of the companies that have benefited from business opportunities that have been presented by the invention of femtocells. The Motorola solutions apply extensive experience in collapsed architectures such as CPE management, FMC solutions (UMA) and RF techniques. This enables the operators to have new services launched with low risk. The Motorola Company through the business opportunities presented to it has become actively involved in the Femtocell technology, making it become an active member of the Femtoforum from 2007.
Through the Motorola Femtocell Ethernet Gateway (8100), the company has exploited the business opportunity that the invention of Femtocell has presented to them in order to improve on how their mobile phone products operate. The web search leader Google has also put aside huge amounts of resources to support the development of Femtocell. For instance, Nokia Siemens Networks is an infrastructure maker involved in the development of Femtocell gear.
Due to the new business opportunities presented to the companies or individuals in the business industry, the industry has attracted many great investments from companies or group of investors. Riaz (Riaz, 1997) also supports this view. The investors are committed and dedicated to the development of Femtocell. For example, the Britain- based Ubiquisys Company has received investment worth $20 million from a group of investors. Olga et al (Olga et al, 2007) states that, with such investments, the business industry are expected to continue benefiting greatly from the Femtocell invention.
The industry receives financial resources that are required for further improvement on the technology or the invention of other technologies in telecommunication. Business deals that have aimed at increasing investments continue to be witnessed between Femtocell focused companies. For instance, Nokia Siemens Networks deal with the worlds’ largest DSL modem maker TMS (Thomson) supports the development of Femtocell gear. The introduction of Femtocell in the communication industry has had the quality of service given to mobile users improved.
According to Martin (Martin, 2000), this has been one of the greatest benefits of the technology in the business environment. The mobile service providers have improved the quality of service they provide to the users through a Femtocell. Initially, indoor service coverage was unavailable or limited. This made it difficult for service providers to provide quality services to the users. The Femtocell has solved this problem by enabling the service providers to improve both the capacity and coverage of service in the business environments.
Since the Femtocell technology will encourage the service providers to improve the quality of service they give to the users in the business industry, users in the industry are able to operate efficiently due to the high quality and effective service they receive. This view is also supported by Shashidhara et al (Shashidhara et al, 2007). Companies reap huge economic benefits from the investment they make on Femtocell. The introduction of Femtocell has increased the financial returns of companies that are involved in the development of the product.
Great economic benefits of the companies have resulted from increased investment, improved quality of service for users and the availability of new business opportunities. These factors have motivated the development and great use of Femtocell in homes and business environments. Consequently, companies have recorded increased sales and efficiency in their operations. This has no doubt contributed to the great profits the companies are making. The channeling back of the financial resources for further Femtocell development continues to trigger further developments.
Efficiency lowers the operating expenses of service providers and attracts a high number of users. For example, the FemtoForum has its members committed to the promotion of Femtocell standards and use. Femtocells have also had negative impact on business. Femtocells require power for users and business to benefit from them. If Femtocells would have to be widely adopted, users would be required to have access to power in their homes. However, this may not be possible for some users living in the rural areas where power may be unavailable.
This would mean that operators will face a great challenge when it comes to providing service to potential customers who lack power. This will impact negatively on the goals of the operator. In addition, service providers will loose business in the rural areas. Telcos and Cable Multiple System Operators (MSOs) are important players in the communication industry. A wireless carriers’ ability to offer Femtocell successfully depend on their roles. If Femtocells were adopted widely in the business industry, they will have a negative impact on the MSOs and telcos.
This is due to the significant additional revenue that will result from leasing backhaul such as the TI lines. For instance, a significant amount of data traffic if offloaded by Femtocells reduces the pressure that is necessary for wireless carriers to add TIs as well as radios to reach cell sites. Because MSOs and telcos will be negatively affected, companies that are involved in these products will be affected negatively. The deployment of Femtocells in a certain market will affect negatively the business enterprises that deal with the products.