AT&T launches 3G femtocell in Charlotte N.C.

AT&T tried to start selling its new 3G femtocell quietly via its retail stores in one city this week, releasing details about the device on a new 3G Microcell website.  But despite the low-key launch there was an immediate hailstorm of coverage in the blogosphere / twitterverse and in the mainstream telecoms press.  AT&T’s 3G Microcell is attracting interest as the first 3G femtocell to be deployed in North America (despite Sprint’s recent claims that they would “definitely be first”).

As reported by Unstrung some time ago, and reiterated this week, the 3G Microcell is supplied by Cisco and incorporates ip.access’ femtocell technology.  Like the recently launched Vodafone Access Gateway, it’s a 4-user device with closed access.  But the 3G Microcell is more sophisticated than the VAG in a number of ways – for example:

• It’s not just about coverage – AT&T offers an option of free calls from the femtocell for a monthly fee.
• Users can verify that they are using the femtocell (and therefore getting free calls) by looking for the “AT&T M-Cell” alpha tag on their phone idle screen (there’s a picture here and below).
• The provisioning and management systems are fully automated (for example the whitelist of authorised phones can be edited online by the end user).
• The 3G Microcell incorporates a router to prioritise femtocell traffic over other Internet traffic in the home.
• Location locking is enforced via GPS (just as with the Sprint and Verizon femtocells) – this is needed in the US due to regional spectrum licensing and strict location requirements for E911.

Jason Nash published the first end-user review of the 3G Microcell on Tuesday.  As well as a full description of the setup process, Jason explains the pricing…

3G Microcell price	Monthly fee for unlimited minutes
$149	$0
$49	$20
$49	$10 (for customers with AT&T Internet)
$49	$0   (for customers with AT&T Internet and fixed telephony)

Here are some interesting snippets from Jason’s review…

• “The difference [when using his cellphone at home] is night and day”
• “$150 is a good investment in the productivity I’ll get back when co-workers or customers call me on my cell phone.”
• “My sales rep, Nathan, was very helpful and mentioned they had sold 5 or so already that day.  Salisbury isn’t a big town so it shows the anticipation for the device.”

AT&T didn’t say much about the launch, but they did contact Engadget to explain that the pricing should be considered as a trial (implying that it could change before the device is launched nationwide).  After some false rumours about the pricing began to cause outrage on the Internet, an AT&T sales rep stepped in to clarify the situation.

You can’t buy the 3G Microcell from AT&T’s website, but you can enter a ZIP code to find out if it’s available in your area (Engadget reported that 28201 works, taking you to a list of 19 local stores where the device can be purchased).

The launch sparked off the now familiar storm of blog comments, divided between those who are outraged by the idea of having to pay to improve their mobile operator’s network coverage and those who think it’s a great idea.  Here’s a random sample of positive comments…

• “3G MicroCell has to be the best thing AT&T has done all year.”
• “I’m ready to pay for this NOW!”
• “I’m really considering dropping my Verizon phone line if the AT&T 3G MicroCell works well.”
• “I’ll get rid of my land line when this is available in Denver.”
• “Personally, I think $20 isn’t bad at all because it is cheaper than a landline, cheaper than Vonage and there is some QoS involved.”

And here are a few of the negative ones…

• “You’re paying the carrier extra money each month because they can’t provide you service that you’re already paying for.”
• “The entire reason femtocells are necessary is because your network sucks.”
• “AT&T says FU to wireless customers in 28 states. Femto plan is discounted if you buy their POTS which they only offer in 22 states.”
• “Let mobile carriers use your internet for free while you pay for the privilege.”
• “The femtocell covers a 5000 square foot range.  Unless you own a huge house, that will cover you and your neighbors, and yet you’re footing the bill.”

[The last couple of comments highlight a common misconception – a lot of people think that their femtocell and broadband connection are being used to improve the network for everyone.  They don’t understand that the femtocell provides a personal signal just for their own family and friends.]

Some other interesting snippets…

• This guy has decided to get two for use in his office.
• This person is wondering if the device is safe (nobody else seems to be worried).
• Here’s a conspiracy theorist – “Ever since AT&T came out wit the microcell I’ve only been able to get EDGE or GSM, no 3G in my house anymore.  Coincidence? No” [Er, yes actually].
• The location lock seems to be working.

What do the analysts think?

• ABI Research’s Aditya Kaul says “AT&T are known to have spend a lot of time and money on getting the femtocell service up and running.  If these pricing trials are any indication, this proves that AT&T continue to have the commitment towards femtocells and would like to play it right.”
• Engadget called the new design “cute” – preferring it to the original design of the trial unit (pictures of which were leaked earlier in the year).  One website bizarrely published a very old picture of the original ip.access Oyster 3G design.
• Juniper praises AT&T for focusing its marketing on the consumer proposition.
• PC Mag says the 3G Microcell could end AT&T’s iPhone troubles.
• Rethink Wireless says national rollout is expected in December.
• Slashgear thinks the woman in AT&T’s video promotions is ‘smug’.

Here are a few additional coverage links in the telecoms and geek press:

Apple blog, CNET, DSL reports, Engadget (published lots of articles), EE Times, Fierce Wireless, Gearlog, Gizmodo, Information Week, Mobile Burn,PC Mag, Phonedog, Slashgear, TechWorld, Telecompetitor, Unstrung, Wireless Week , Zacks

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• AT&T launching an iPhone compatible femtocell – 3G MicroCell