Qualcomm Inc. will buy a stake in ip.access Ltd., a U.K.-based femtocell vendor. The dollar amount of the investment and Qualcomm’s relative share in ip.access were not made public, but ip.access said the stake was not a controlling one.
Other well-known ip.access investors include the venture capital arm of Intel Corp., Cisco Systems Inc. and Motorola Inc.
The investors are providing funding support for the development of ip.access’ “Oyster 3G” femtocells, which offer in-home access to broadband services. The product currently is being trialed by network operators, according to the company.
Last month, AT&T Mobility confirmed that it was planning to trial femtocell technology and a report suggested that the network operator might spend as much as $500 million over five years with ip.access to deliver the technology to its customers. The price to end-users may be about $100.
Ip.access uses GSM-based technology, while Qualcomm has made its reputation in CDMA technologies.
Qualcomm’s investment would give the American chip vendor and IPR licenser an interest in globally dominant GSM-based technologies, as well as in femtocells.
The inherent limitations of cellular networks, which often include poor in-home reception, has created a market for femtocells and Wi-Fi routers that can deliver broadband connections for personal, in-home use.
That market is likely to grow as more cellular subscribers use mobile handsets exclusively for their telephony needs and as a convenient means of access to Web-based content. Femtocells employ the macro-network’s frequency spectrum and are usable with ordinary handsets, while in-home Wi-Fi solutions rely on dual-mode, cellular/Wi-Fi handsets.
According to Ovum, 60% of mobile phone calls are initiated within the home in the United States, a fact that supports the growth of in-home extensions of cellular networks for improved transmission and reception.