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Edition: U.S. Article Comments (0) Email Print Reprints Read Qantas 747 returns to Sydney, A380s stay grounded 12:50am EST EU intervention for Ireland under way: opposition 10:29am EST Five Canadians, two Mexicans dead in Cancun resort explosion 14 Nov 2010 UPDATE 1-German stance may push nations to bankruptcy-Greek PM 7:31am EST BHP kills Potash Corp bid, revives $4.2 billion buyback | 9:24am EST Discussed 325 Pilots and passengers rail at new airport patdowns 97 Analysis: German tempers fray as U.S. policy gulf widens 74 Amnesty: prosecute Bush for admitted waterboarding Watched Japanese Tourism Bra Wed, Nov 10 2010 Bejeweled bra exposed in NY Thu, Oct 21 2010 Robot actress steals the show Thu, Nov 11 2010 Network congestion lifts home 3G station market Tweet This Share on LinkedIn Share on Facebook By Tarmo Virki, European technology correspondent HELSINKI (Reuters) - Technology that improves mobile phone reception indoors is starting to break into the mass market as operators struggling with network congestion have started to distribute these... Related News UPDATE 1-Thai True Corp surges on CDMA plan speculation 4:30am EST Nokia, Siemens struggle with JV stake sale Fri, Nov 12 2010 UPDATE 1-Telia picks NSN, Ericsson for Finnish LTE rollout Thu, Nov 11 2010 UPDATE 4-No-brand vendors hit Nokia, smartphones next-Gartner Wed, Nov 10 2010 Data usage boom causing network congestion -survey Tue, Nov 9 2010 Related Topics Technology » Media » Large snowflakes fall as people walk up Lexington Avenue in New York in this December 16, 2008 file photo. Credit: Reuters/Chip East By Tarmo Virki, European technology correspondent HELSINKI | Mon Nov 15, 2010 9:14am EST HELSINKI (Reuters) - Technology that improves mobile phone reception indoors is starting to break into the mass market as operators struggling with network congestion have started to distribute these devices for free. A femtocell is a small, low-power indoor base station for 3G mobile phone networks, enabling operators who struggle with network capacity to improve indoor coverage at a much lower cost than the alternative of adding more large mobile phone towers. The emerging femtocell market has so far remained a small business partly due to the high costs of technology, but this year the wholesale price has dropped below $100, enabling operators to give them away for free. Google-backed Ubiquisys -- one of the top firms in the new market -- told Reuters it expects millions of femtocells using its technology to be sold next year, compared with 2010 volumes in hundreds of thousands. "Operators around the world will follow Softbank in Japan by offering free (or bundled) home and retail femtocells," said Keith Day, marketing chief at Ubiquisys. Several industry analysts are forecasting the market to surge in coming years, helped by falling prices, and to top $1 billion in two to three year. Research firm In-Stat analyst Allen Nogee said he expected total market to top 1 million femtocells this year, compared with his 400,000 forecast unveiled six months ago. "There have been some launches since summer and a few operators have started giving them away free to customers, like AT&T in some cities," he said. In-Stat forecasts the femtocell market volume to grow to 31.8 million in 2014. In addition to Ubiquisys, major technology firms like Cisco , Samsung Electronics, Alcatel-Lucent and Huawei make femtocells. The devices are plugged into a customer's broadband Internet connection, like a wireless Internet base station, and allow users to make calls or use data services with their regular 3G mobile phones. With near $100 smartphones starting to hit the stores, and use of video on phones starting to proliferate, most telecoms operators around the world are struggling with network capacity. Fearful of losing customers, only a few have publicly admitted to the problem of keeping pace with data traffic, but 63 percent are experiencing difficulties, a global survey of 30 operators by telecoms software firm Amdocs showed last week. Telecoms operators around the world are looking to upgrade their network technologies in coming years, with increasing use of femtocells seen as part of solution for many carriers. In addition to Google Ubiquisys owners include Accel Partners, Advent Venture Partners, Atlas Venture and T-Mobile's 1 2 Next Technology Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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