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Verizon Wireless Launches $250 Femtocell To Improve Indoor Coverage

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imageFor Verizon Wireless customers who don’t get a good signal at home, or in the office, the company is now selling femtocells for $250, which use a broadband line to increase coverage to a limited territory. The company is cleverly calling it a “Network Extender” and pitching it as “A Million-Dollar Cell Site In Your Home For $249.99.” The device, manufactured by Samsung, is like a wireless router, which is connected to a user’s broadband Internet connection. It covers an area of up to 5,000 square feet, and supports only basic service, not EV-DO speeds. This sounds like a great deal for Verizon (NYSE: VZ). It’s unclear whether they are subsidizing the cost of the femtocell, but at $250, it doesn’t seem like it. Verizon gets to offload the calls from their network, and gets to win over customers in areas where they weren’t serving well. Plus, customers will be docked minutes when in reach of the femtocell, even though they are paying for the back haul on their own internet connection. Although there are customers willing to pay for the service, Verizon should add an additional incentive. More information can be found here.

Jan 26, 2009 12:23 PM ET

Posted In: Companies, Verizon, femtocell

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