Launched in 2013, The Tucan3G project in Peru, is introducing advanced mobile telephony and data services in isolated rural locations in the Amazon. The project utilises new wireless technologies for access networks based on 3G femtocells deployments, with the possibility of evolving to 4G, as well as WiLD (Wi-Fi for long distance), WiMAX, and VSAT satellite communications.

Femtocells are small, low-power cellular base stations, which resemble wireless routers and act as repeaters to boost signals. Femtocells are much cheaper to install according to Josep Vidal, director of the project who also points out that “a classical station might cost up to €40,000 while a small cell is priced at €500.” In Peru less than half of mobile subscribers access mobile broadband, with just over 44% of unique mobile subscribers accessing 3G or 4G mobile broadband at the end of Q2 2016 2, extending mobile broadband coverage to address these population is extremely difficult. Rural populations tend to be spread out from village to village across wide areas, making the business model of building a site in such areas highly unprofitable. This is reflected in Peru’s relatively low base station density compared to Latin American peers and to Europe (where Peru is three to four times lower).

Femtocell network deployment offer many advantages to both operators and the end consumer. Operators benefit by providing extended coverage, near to the users at much lower cost and without the need to build expensive base station infrastructure required for dedicated towers. Existing infrastructure such as electricity poles and street lighting can be used for positioning the femtocell unit with little cost and without the need to deploy dedicated power and security required at traditional base stations. Consumers can benefit from hosting the femtocell at their property or at local communal buildings for a rental fee from the operator in return for providing very low electricity consumption and little or no maintenance requirement. Where solar solutions are required due to a lack of grid electricity, the host can also benefit from access to surplus power to use for lighting and other household requirements. Femtocells typically allow mobile phones to work at very low powers, increasing their battery life, which saves the user from high recharge costs and reducing interference and radio exposure to the end phone user.

Compared to traditional base station towers, there are also challenges to deploying femtocell networks. Backhaul access to the backbone network is still required and may need to use expensive satellite providers in remote areas where fibre is too costly to deploy. Installation challenges include equipment theft, power outages from non-dedicated supply, and the ability to track network performance across multiple sites. Femtocell networks are often required to have stringent location registration for legal intercept and have been identified as being more prone to digital security threats from hackers.

The GSMA believes that femtocell deployment in rural locations supports mobile networks in addressing the growing demand for mobile connectivity, improved capacity and coverage. To support efficient femtocell deployments the GSMA believes the industry should review the following approaches:

• Partnerships with existing infrastructure providers of power supply and street lighting
• Request fast track procedures for building permits and for equipment deployment
• Request the exception of femtocell installations from location registration requirements
• Request the reduction of import duties and permit costs for femtocells equipment
• Develop PPI deployment strategies to encourage home owners to host femtocell sites