Why Some AT&T Customers Might Want to Stay Away from "MicroCell"

It appears there are at least two distinct customer segments where it comes to use of AT&T's new femtocell offering.

Users who really cannot get decent macrocell coverage in their homes or offices probably will welcome the "MicroCell."

But users who do not have that problem, and want to offload their data traffic to the in-home network, will be better off avoiding the Microcell.

The reason is that data consumed on its MicroCell femtocell will be included in subscribers' newly capped monthly data allowance.

Any 3G data traffic running over the AT&T MicroCell will count towards a user's monthly data limits, just as making voice calls over the Microcell counts towards a user's monthly bucket of minutes.

It is possible to get unlimited calling on the Microcell for $19.99 per month, but this is only for voice calls, not data.

In contrast, Wi-Fi usage does not count towards a subscriber's monthly data limit, even though both access methods use the customer's own fixed broadband connection. Of course, AT&T has to invest capital to acquire, deploy and support the femtocells, so relying on the customer's own equipment makes sense, where possible.

The 3G MicroCell complements Wi-Fi by providing enhanced in-home voice coverage and reliable data when Wi-Fi may not be available -- but it is primarily intended for voice calls.

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AT&T Microcell Launch in April

AT&T will begin its national roll out of femtocells, which it brands as the AT&T 3G MicroCell" beginning in mid-April, with new markets activating in cities across the continental U.S. for the next several months.

The AT&T 3G MicroCell improves in-building reception for mobile devices by creating a local mobile repeater site, like a Wi-Fi connection does. The femtocell uses the home broadband connection for access, offloading mobile traffic to the fixed broadband network and therefore avoiding any reception problems in the home or building.

Developed in conjunction with Cisco and in a public trial in select markets since September, AT&T 3G MicroCell is available for a one-time cost of $149.99.

Consumers with AT&T 3G MicroCell will be able to easily activate the device the same day it is purchased.  Customers may define up to 10 mobile phone numbers that can use the femtocell and up to four devices can operate on it simultaneously. There is no recurring cost, but mobile minutes will be deducted from a user's account as they would be if on a mobile macro-cell.

Customers on "Family Talk" plans can pay an additional $19.99 a month to make unlimited calls from the Microcell, without deducting any minutes from their plans.

Consumers who select 3G MicroCell calling plans at purchase are also eligible to receive a $100 mail-in-rebate toward the purchase of AT&T 3G MicroCell. Customers who also purchase a new line of broadband service with AT&T (DSL or U-verse 1.5MB or higher) are also eligible for $50 rebate.

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