Sprint and Fixed-Mobile Convergence

Ina Sebastian | September 17, 2007, 04:38 PM

Sprint announced today the limited launch of Airave, a femtocell – meaning compact cellular basestation – for enhanced coverage and unlimited wireless calling in the home from Sprint compatible cell phones. The plan will cost $15/month for individuals ($30 for families) on top of current cell plans and include automatic roaming to the cellular network when outside of the home.

We will hear more about such Fixed Mobile Convergence offerings and Femtocells in 2008. Although the majority of consumers use a combination of cell phones and landlines, the popularity of cell phones is increasing – in particular young users are more likely to want to use cell phones exclusively. Cellular coverage outside of the home is still most important, but pricing and in-home coverage follow close behind as two top priorities for cell phone users choosing a wireless provider today. This is what FMC services such as Sprint’s Airave and T-Mobile Hotspot at Home are aiming at. Forty-one percent of online users report less than optimal cellular coverage in their home.

Wireless carriers can position these services as an improvement for current customers in order to increase loyalty. If Sprint’s Femtocell works well (there are still issues with Femtocells, such as possible interference, etc.), this should be easier than T-Mobile’s offering - which requires consumers have home Wi-Fi (ideally purchase one of the voice-optimized pre-configured 802.11g routers offered by T-Mobile) and purchase a dual-mode phone, of which there is not a great variety in the short term.

Speaking of FMC, the Pivot Wireless partnerships with cable companies is also an FMC play.