Verizon launches femtocell, but is better coverage enough?

While AT&T’s service, although not officially released, suggests that unlimited calling is in the pipeline, Verizon’s announcement focused solely on better voice coverage. Jarich said this is an important question for many consumers who want not only better coverage but a better price point. Femto-specific services or tariffs are an important consideration for a lot of operators, including AT&T, when they launch a femtocell device, he said.

“It’s not just about better coverage, but can I get the better coverage but then use this to get some better tariff? Coverage alone isn’t going to be attractive to a broader set of folks,” Jarich said. “Yes, it will be a great tool for those folks who are in holes or somewhere out of the way, but it’s going to hit a lot more if you can actually offer some sort of better calling plan.”

With Verizon’s FiOS-based VoIP offering, the Verizon Hub and now its femtocell device, there is also the danger that these services may compete with one another, Jarich said. The carrier will have to figure out how these cut into each other in terms of pricing. That could be a reason the Network Extender is being marketed primarily as a way to improve coverage, although lacking a service plan is definitely a missed opportunity, he added.

“I’m a Verizon customer, and I was looking forward to the femtocell service coming out because the coverage could be better, but I really was looking forward to some sort of unlimited calling plan, so I think it was disappointing,” Jarich said. “I think it’s also important to recognize that we are still talking about less than a dozen femtocell launches out there, so operators are still learning what works and what doesn’t. It will take a little time.”