Cisco is keeping its cards close to its vest with regard to its plans in the femtocell industry, but its interest is officially noted as it makes a strategic investment in U.K.-based IP Access for an 
undisclosed sum. IP Access is currently testing its Oyster 3G femtocell with the goal of improving indoor coverage for 3G networks, writes Network World's Brad Reed. The Oyster 3G femtocell is designed to support any 3G handset and to deliver indoor wireless signals through broadband DSL or cable connections. Cisco spokesman John Noh says that his company’s investment in the company is exploratory in nature and that no one should expect any major femtocell-related product announcements from Cisco anytime soon.
Femtocell has been described as having your own personal cell tower and has generated much hype in the industry - including the interest of Google which itself invested an undisclosed amount in another U.K. start-up Ubiquisys last July.
Read more about femtocell:
* Femtocell enables carriers to offer FMC alternatives
* The femtocell E-911 caller location problem
* Sprint, T-Mobile respond to the femtocell E-911 caller location problem
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Cisco investment in femtocells
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.