The use of Femtocells and Pico cells for LTE

There are some thoughts in the industry that LTE will change how networks are deployed. Network operators will leverage smaller cell sites in order to deliver the increased capacity of LTE and to increase indoor coverage. The primary challenge with increased pico cell deployment is the cost to backhaul the traffic to the core network. However, since many enterprise locations have Ethernet connections, there is the possibility of leveraging the Ethernet transport to an aggregation hub. This may work in urban areas but may be a challenge in other areas.

The challenge with femtocells in LTE is also the backhaul in addition to potential impact on the macro networks. Even though femtocells are supposed to be low power to prevent interference with the macro networks, more work needs to be done to ensure its effectiveness while diminishing potential interference issues. In addition, since LTE networks are supposed to deliver 5-6Mbps to the end user it may be throttled in most homes where the fixed line connection speed is less than 5-6Mbps.

Net Neutrality

Why should AT&T and other large mobile operators who invest billions to secure access to spectrum not have control over how the network is used? They should have control over managing the traffic on their networks. If Google wants control over the Internet pipelines, then the company should go out and purchase the rights to wireless spectrum. Google lobbied the FCC for open access in the 700MHz frequency bands, knowing well that it had no intentions of purchasing this spectrum. Over-the-top companies like Google make billions of dollars leveraging Internet access without paying any of the costs.

Even though, companies like YAHOO and Google are pushing the consumer side of the issue, their real concern is to continue making billions using the Internet without incurring any of the costs. The Internet is not free. Companies like Verizon Wireless, AT&T and the cable companies spend billions to build their networks.

What if there are only two infrastructure vendors

If there were only two wireless infrastructure vendors, who would they be and why?
Well, Ericsson is one of the obvious choice but who would be the second. Huawei has gained a lot of traction in Europe and is making headway in North America with wins in Canada (Telus and Bell Mobility) and with Leap, Cox, and Metro PCS in the US markets. However Nokia Simens Network is still second overall in terms of market share. What will it take for Huawei to surpass NSN? Huawei will need to gain network entry into one of the top 3 US operators network (Verizon Wireless, AT&T , Sprint) to build the credidibility with the other two operators. NSN lost crucial access to the North American market when the company lost its bid to secure Nortel's CDMA and LTE business. Two of the top three North American operators are CDMA operator's so winning Nortel's CDMA business would have provided direct access to these operators.
Alcatel-Lucent is gaining strength. The company's stock price has increased significantly this year. The company will need to expand its LTE contracts if it wishes to remain a strong contender.