Verizon Jumps into the Femtocell Market

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On Monday, Verizon Wireless announced its entry into the market for femtocells, small home routers expressly designed to allow mobile phones to place crystal-clear calls even while indoors.

Verizon’s “Network Extender” device is priced at $249.99, a flat fee that will not be supplemented – or subsidized – by any monthly pricing. The device is manufactured by Samsung.

Sprint also provides a similar device, the Airrave, while T-Mobile’s HotSpot@Home uses Wi-Fi to connect its handsets. To date, AT&T has not announced a femtocell offering.

Verizon uses the home’s broadband connection as a backhaul, essentially translating the cellular call into a VOIP connection. Who needs it? People in rural areas that may live on the outskirts of a cell site, Verizon said. According to Verizon, the femtocell provides an additional 5,000 square feet of coverage. One drawback: EV-DO is not supported, including those services that depend on it, Verizon said. Update 1/27: Network Extender users will be charged against their plan, in minutes, for any calls they make.

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