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Editorial

AT&T 3G Microcell Will be Hot

One of the weaknesses of a modern cell phone is that a good signal is far more likely in business locations than homes, which are often in rural locations. AT&T is about to fix that, and it'll be a hot, must-have accessory for every iPhone 3G owner in 2009.

AT&T recently let it be known that they'll be releasing a device that connects to a broadband connection and generates a localized 3G radio signal. The device is perfect for rural homes and businesses where AT&T's 3G signal is weak or non-existent.

That's the situation I am in. Just about anywhere I go in Denver, I can get an AT&T 3G signal, but it's especially strong in dense business locations. Where I live, however, the iPhone 3G is practically useless. If the wind is coming from the right direction and the moon is in the right phase, I might have a usable signal.

The "AT&T 3G Microcell" is essentially a low power 3G radio transmitter that connects to a home router and is said to blanket the local area with a range of about 70 ft. (5,000 square feet.) That's enough for most home users, who have an Internet connection, to get 5 bars right in their home.

Microcell

Photo credit: IntoMobile

I exchanged some e-mail with Mark Siegel, AT&T's Executive Director of Media and Industry Analyst Relations for AT&T Mobility. He said:

"As you know, this is a technology we see potential in.  We are currently engaged in employee trials and plan a market trial for the second quarter.  We don't have details beyond that at this point."

Because the device isn't shipping, he couldn't provide a photo of the device, but I suspect it'll be something the size of the current 3G "modems" for Macs and PCs." Of course, the first things I thought about were:

  • Is the power low enough to be a negligible contribution to the radio signals levels in my house? I already have "g" and "n" Wi-Fi base stations plus an extra Airport Express and wireless phones.
  • Will I have to mess around opening ports on my primary firewall/router - just downwind of my cable modem? I suspect I will.
  • Will there be a monthly fee? No one know for sure yet since AT&T has made no official announcement of product plans.

It's expensive to build cell towers everywhere and there are limits on cell phone power output (2 watts). That dictates how close a user must be to a tower. A blanket of towers to fill in the holes would not be practical for AT&T, so this device, paid for by the user, solves a significant problem.

Of course, Comcast, who would like to sell me digital voice, isn't going to like this, but considering the trouble they've already gotten into in the past, the new spirit of oversight in Washington D.C., and AT&T's experienced attorneys, I don't foresee a problem.

What I do foresee is a new wave of smartphone technologies driven by this product. In the past, we used our smartphones when out and about, often in a business setting. Once home, however, with possible spotty cell phone coverage, a land line and access to a Mac or PC on broadband, smartphone usage becomes a secondary. The AT&T 3G Microcell could change all that and breathe even more life and excitement into smartphone software and technologies.

Suddenly larger screens on a 3G enabled handheld that always has five bars in the home changes the rules of the game.

It's also the kind of product that can spawn new ideas, especially of the device is small enough to travel with and there are no other limitations. I'm really looking forward to this hot product, and I'm betting every iPhone 3G user will want one too.

12 comments from the community.

You can post your own below.

jimothy said:

Mr. Nitpick checking in: Homes are more often in urban or suburban areas than rural areas. If the rural areas had a lot of houses, they wouldn’t be rural. smile

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Pat Fauquet said:

This is an important development. I work with many clients who cannot get 3G coverage at home, and sometimes at work. The concept of traveling with this device is also compelling. If you have an Internet connection, you will have 3G reception. I will put one in my suitcase as I frequently find I do not get 3G signal on the road.

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John Martellaro said:

In 2003, 59 million Americans lived in “rural” locations.
http://www.prb.org/Articles/2003/FiftyYearsofDemographicChangeinRuralAmerica.aspx
I figured that was good enough to define as “often,” even if only 21% of the population.
smile
  -J.M.

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Ashley Grayson said:

I’m confused. If I have home broadband I can have home WiFi with Airport or some other device.
Why would I pay extra for a 3G micro cell unless it also boosted service phone too?
I can see this working well for restaurants and businesses who’d like to offer 3G connectivity to
customers but not administer a WiFi point, but why in the home?

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macslut said:

I don’t think this will be that hot of a product.  In many ways, this product has the potential to be very insulting.

I’m imagining that it’s going to cost between $300-$500, and/or some monthly fee.  That’s pretty insulting for home use.  Think about it.  You’d be paying a monthly fee to use a box that enables you to use your AT&T phone on your Internet connection which you’re already paying for, all because AT&T doesn’t have adequate cell phone coverage. And it will cost you minutes on your AT&T plan on top of that. Ouch, if AT&T wasn’t trying to gouge you every which way, they’d simply allow you to do VoIP over WiFi at no extra charge.

Another problem here is that the coverage and access won’t be sufficient for mass use.  There are plenty of restaurants, rest areas/gas stations, even small towns that might want to provide this as a service, but these boxes really don’t do the job.  Their reach is too narrow and so too would be the bandwidth.

These boxes will be useful for individuals with broadband in small homes who use their AT&T phone when the go to work, or vice-versa.  However what we really want is either:

1) AT&T to allow full VoIP over WiFi.
2) Much more powerful versions of these boxes to be sold very inexpensively to people who are willing to run them in “open access” mode.  This way small businesses can advertise themselves at AT&T Cell and WiFi hotspots.

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richb said:

If they charge for it for reqular use, it will be a failure. Why pay more for service they aren’t providing. It would be a finger in the eye for those that are paying full price for less then full service.

It would be a good carry around thing though for hotels etc,  if you have business in areas with bad service (many more places then you think).
It should be free to those without good service.  It would be a good quick fix for many people who are in areas that telcos really don’t want to provide better service (almost everywhere outside major cities). 

Unfortunely most telcos don’t think that way.  They don’t care if one or two people have bad service.  You have to be annoying thousands before they really do anything to fix problems.

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rabber said:

I see this type of product as eventually being combined with your router. In other words, you will purchase some Apple Airport product that has Wireless n (or whatever new standard is available at that time) and a femtocell or microcell to boost your cell phone coverage. It could also be combined with your Cable/DSL/Satellite modem instead of the router. I see no reason for AT&T to rip us off and charge more than a couple of hundred dollars and, potentially even less. I also do not see them charging for monthly usage. Remember, their ultimate goal is for you to use your cell phone. If they can grant you better coverage at home or the office then you are more likely to use your cell. This may put you in a higher monthly minutes plan or attract new customers who wouldn’t have bought AT&T due to poor coverage at home or work.

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sxotto said:

I would probably buy two, right along with two new 3G iPhones, which we did not upgrade to because there is not a snowball’s chance in hell we will get 3G service here, either at work or my home. To boot, I have NO AT&T service at home. (The coverage map lied.)

Macslut, you are right that we should be insulted to have to pay for an extra gizmo just to get the coverage they’re not supplying. We’ll see what they come up with, but if they offered this to customers like me, whom they stiffed with false coverage claims, in exchange for open access to it, that would go a long way toward spreading their network out over a new mesh network, using a new model for the enterprise. Now THAT would be an exciting way to justify the slogan “More bars in more places”.

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Bill B said:

Like Ashley Grayson (above), I am likewise confused.

Unless the home in question lacks a cell signal sufficient for voice (which doesn’t even require “Edge Network” let alone “3g”), the homeowner could get all this with a simple, in-home, wi-fi connection.

And even if their cell signal IS as bad a that, they’d have to compare the savings (assuming they drop their land line) and the convenience (having just ONE phone number) against the cost of AT&T’s new Gizmo—and any related fees.

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timon said:

Why bother at least for phones that have WiFi, just let them access the network using VOIP and then don’t charge the user for the call.

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sxotto said:

@ timon:
That would be fine if it were possible to do VOIP on an iPhone. It is not. The VOIP solutions for iPhone are lame, cobbled-together, call-back schemes that don’t allow anyone to call YOU, and are designed to save money calling home from abroad. There are plenty of us that have weak or non existent AT&T connections to make this other product viable (I’m one of the 59 million in rural America).

That said, you are right. The better solution would be to solve the iPhone VOIP need.

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Asad said:

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