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Sep. 22, 2009

Wireless giant AT&T has launched its new Femtocell service dubbed 3G MicroCell.

The compact unit acts like a mini cellular tower in the home or small business, allowing better indoor coverage.

The MicroCell connects to AT&T's network via users' existing broadband Internet service and is designed to support up to four simultaneous users in a home or small business setting.

With AT&T's new 3G MicroCell, the mobile user gets better cellular signal performance for both voice calls and cellular data applications, like picture messaging and surfing the Internet.

While AT&T's site didn't provide specific availability and pricing details, it appears the MicroCell will initially be available in limited areas and will require a monthly service fee.

AT&T certainly isn't the first wireless carrier to deploy a femtocell solution. Sprint currently offers a similar solution, which also requires a monthly service fee for unlimited service.

Femtocells have long been touted as the answer to cheap backhaul for mobile service carriers, but lack of a business model has kept them from mass deployment.

AT&T has so far not announced any national plans but says the price of its trial femtocell device is $150.

Individual or business customers aren't required to have a monthly service plan, but if they choose a $20 monthly plan for unlimited calling, they will receive a $100 rebate on the device.

Overall, femtocells have been slow to take off. There are still many that aren't convinced of its real value.

However, some wireless industry analysts still think they might become more popular in the next year.

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Source: T-Mobile USA.