Looks like Cisco wants to keep its toe in the waters for helping mobile carriers compete using wireless substitution for traditional landline phone. And the strategy complements Cisco's already strong position with its Linksys routers and VoIP gateways -- offering support for both the 802.11 compatible dual mode phone and the standard cell phone without 802.11 support. Femtocells help overcome the objection for some consumers concerned with poor in-home reception, and since femtocells can be used with a standard handset they can also help mobile subscribers keep handset costs down. Femtocells also save mobile carriers valuable spectrum.

Wireless substitution is a material factor in the continuing decline for traditional wireline phone services, so for carriers like Sprint and T-Mobile either Femtocell or an 802.11 connected voice service helps these carriers compete with full service wireline offers. And for providers like AT&T and Verizon who offer both wireline and wireless services, offering low-cost, high quality in home mobile connectivity is essential as more consumers drop the landline service in favor of going with mobile services.